TRADITIONAL METHODS AND ACTIVITY BASED COSTING

Product Costing - Traditional Methods and Activity Based Costing

Product Costing - Traditional Methods and Activity Based Costing

Activity-based costing (ABC) can provide health care professionals with the necessary information to address the critical questions required to manage any organization. ABC is based on the very simple, yet very powerful, principles that activities consume resources and services use the output of these activities. ABC focuses on the management and cost of activities, whereas traditional costing systems focus on departmental or service costs. ABC improves the costing of products and services by more accurately assigning overhead or indirect ...