What is Activity-Based Costing? This video describes how ABC differs from Traditional/Simple costing. In addition, there is a simple example included to show the viewer how to 1) calculate an allocation rate and 2) how to allocate costs (overhead/indirect costs) using the allocation rate.
What is Activity-Based Costing video: YouTube
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Activity-Based Costing Examples: In this tutorial there are examples on using an activity-based costing system: 1) calculate the allocation rate and 2) allocate costs (overhead/indirect costs) using the allocation rate. In addition, in the video, we calculate the indirect costs (manufacturing overhead) per unit of planned products as well as the product costs (direct materials + direct labor + manufacturing overhead) per unit of planned products.
Activity-Based Costing Examples video: YouTube
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