When you complete this course, you will be able to:
This CPE course examines modern production environments and how activity-based costing may be more useful than traditional methods of costing (marginal and absorption). Activity-based costing is an alternative approach to product costing, that is a form of absorption costing, which first allocates overheads to cost pools before absorbing them into units using cost drivers. This course includes details regarding activity-based costing which has been developed to solve the problems that traditional costing methods create. In addition, this course examines when activity-based costing is relevant, as well as the advantages and disadvantages of this alternative approach.