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Activity- Based Costing Cost Page 1
ABC Costing Process Costing Job-Order Costing distinct products homogeneous products e.g., house construction oil wells shipbuilding PC mfg. (e.g., Dell) e.g., bricks soda paint oil refining Job $ / # units = cost per unit Dept. $ / # units = cost per unit Page 2 Page 2
“The case of many PDORs” • Instead of just one MOH pool and one PDOR, • many MOH pools and many PDORs to assign • costs to one product • Examples: • Machine setups • Machine hours • Number of units all for one product... Page 3
Actual DM and DL transferred to WIP, but MOH is assigned to WIP using multiple PDORs Also, use actual rather than estimated information Page 4
Cost Activity- Based Costing • IN CLASS: • Audio Basics Corporation • EXTRA: • J.B. Goode Company • The Cutters (A) • The Cutters (B) Page 8