Question

Topic: Student Questions

Activity Based Costing/ Full Costing Approach?????

Posted by Carl Crawford on 12/7/2004 at 2:19 PM ET 1500 Points
hi guys,

looks like i have put my foot in my mouth again:

https://www.marketingprofs.com/ea/qst_question.asp?qstID=4470#31077

i dont really have any idea on the topic leanne is asking about, so can you please help me make things right.

then i will take a break for a week or two. i seem to be doing this a lot lately :(
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RESPONSES

  • Posted by Pepper Blue on 12/7/2004 at 2:50 PM Accepted
    Carl,

    Not my strongest area, but here is something to help you out:

    Activity Based Costing: This is a practice in which all activities are identified and all related costs of performing (all resources, not just human, shipping etc.) are calculated, providing actual costs chargeable. BENEFIT: It accurately identifies sources of profit and loss.

    Full Costing Approach: The full cost methodology addresses the objectives of total costs and avoidable costs. It is the suggested methodology for companies that are performing rate setting, managed competition, outsourcing, or privatization projects. BENEFIT: This methodology assigns/ allocates each cost involved.

    Retail Method: This method is often used for example by those printing price catalogs for their customers and who have the need to maintain a steady retail price. Your actual costs may fluctuate up and down based on special deals from your suppliers, changes in the currency, or other factors, but the retail price will be locked in.

    BENEFIT: The system will still cost your inventory on a FIFO basis, so the cost of sales will always be accurate. And if your actual costs change enough, you can manually change your standard retail price.

    I hope that helps!
  • Posted by Peter (henna gaijin) on 12/7/2004 at 4:12 PM Accepted
    I did a google and found this presentation on Activity Based Costing:
    https://www.pitt.edu/~roztocki/abc/abctutor/index.htm
  • Posted by Carl Crawford on 12/9/2004 at 1:49 AM Author
    Randall has contacted me and he has said he will add 500 point to this question. It is now 1500 points.

    Thanks Randall
  • Posted by SRyan ;] on 12/9/2004 at 3:25 PM Member
    Leanne, I really believe that using search tools effectively is a learned art. My business partner frequently got aggravated because I was always able to find things on the web that he couldn't. ;]

    On a different Q&A thread here, Carl posted some interesting links related to Google. I highly recommend that you spend some time on www.googleguide.com to learn some of the tricks. It will be a big help to you in your future school projects and life in general!

    Shelley

    ps. Carl, do NOT award me with points for this response.
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