Activity Based Accounting
Activity Based Accounting is an accounting practice where the total costs incurrred for the common overhead activities are assigned to each product or service in the ratio of their actual consumptions rather than dividing the total cost equally across the product or service range.
An application-oriented question on the topic along with responses can be seen below. The best answer was provided by Sreyash Sangam on 03rd May 2019.
Applause for the respondents - Sreyash Sangam, Swaminathan G, Hari Shyam Gupta
Also review the answer provided by Mr Venugopal R, Benchmark Six Sigma's in-house expert.