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Accounting: Difference between revisions

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=== Lesson 3 Activity based costing ===
=== Lesson 3 Activity based costing ===


Recap from[[#Accounting 2 class week 14]]
Recap  
* [[w:cost-volume-profit analysis]]
* [[w:Contribution margin]]
* [[w:Break-even]]
* [[w:Margin of safety]]
* [[w:Operating leverage]]
from [[Accounting#Accounting 2 class week 14]]


'''[[w:Activity based costing|Activity based costing]]''' ('''ABC''')  is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more [[w:indirect costs|indirect costs]] ([[w:overhead (business)|overhead]]) into [[w:direct costs|direct costs]] compared to conventional costing. ( Wikipedia )
'''[[w:Activity based costing|Activity based costing]]''' ('''ABC''')  is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more [[w:indirect costs|indirect costs]] ([[w:overhead (business)|overhead]]) into [[w:direct costs|direct costs]] compared to conventional costing. ( Wikipedia )
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