Tag Archives: activity

Activity based costing

Costs are usually allocated either for decision making, valuation, or cost reimbursement. There are three steps when it comes to the traditional approach of cost allocation, and that is to first accumulate costs within a production department or a non-production one, then allocate the costs from the latter to the production department. The final step comes in the form of

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What’s New in Management Accounting

Innovations Key innovations in management accounting include: Japanese management accounting; business re-engineering; activity-based costing; strategic management accounting; economic value-added approaches; accounting and ‘e’ business, and performance measurement and incentives.   Source: http://www.lse.ac.uk/accounting/news/MARG/home.aspx   Trends The seven major trends in management accounting are: Expansion from product to channel and customer profitability analysis; Management accounting’s expanding role with enterprise performance management (EPM);

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