Post by account_disabled on Mar 6, 2024 6:08:14 GMT -5
The to your restaurant for lunch/dinner, the waiter or waitress may perform the following work units: Customer seats and offer menu Take your order Take orders to the kitchen Bring food Filling drinks Determine and provide invoices Collect money and give change Delete a table Each of them is an activity and the performance of each activity consumes resources which requires costs Activities represent the work performed within an organization. Activity costs are determined by tracing resources to activities using resource drivers. . Activities Drivers (Activity Cost Drivers) Just as resource drivers are used to trace resources to activities, activity cost drivers are used to trace activity costs to cost objects.
Activity drivers are defined as measures of the frequency and intensity of demands placed on activities by cost objects. Activity drivers are used to assign costs to cost objects. Cost drivers are activities that generate costs. Cost Whatsapp Number List drivers are factors, such as activity levels or volume, that causally influence costs (over a specified time span). This means that there is a cause-and-effect relationship between changes in the level of activity or volume and changes in the total cost level of that cost object. Thus, cost drivers signify factors, forces or events that determine the costs of activities.
Based on activity usage (consumption), activity costs are tracked to cost objects. In a manufacturing organization, the following are examples of some activity cost drivers: Some Examples of Activity Cost Drivers: Number of received orders for the receiving department. The number of purchase orders for the operating costs of the purchasing department. Number of shipping orders for the shipping department. Number of units. Number of settings. The amount of labor costs incurred. The value of ingredients in a product. Number of material handling hours. Number of inspections. Number of schedule changes. Number of shares received per month. The number of machine hours used on a product.
Activity drivers are defined as measures of the frequency and intensity of demands placed on activities by cost objects. Activity drivers are used to assign costs to cost objects. Cost drivers are activities that generate costs. Cost Whatsapp Number List drivers are factors, such as activity levels or volume, that causally influence costs (over a specified time span). This means that there is a cause-and-effect relationship between changes in the level of activity or volume and changes in the total cost level of that cost object. Thus, cost drivers signify factors, forces or events that determine the costs of activities.
Based on activity usage (consumption), activity costs are tracked to cost objects. In a manufacturing organization, the following are examples of some activity cost drivers: Some Examples of Activity Cost Drivers: Number of received orders for the receiving department. The number of purchase orders for the operating costs of the purchasing department. Number of shipping orders for the shipping department. Number of units. Number of settings. The amount of labor costs incurred. The value of ingredients in a product. Number of material handling hours. Number of inspections. Number of schedule changes. Number of shares received per month. The number of machine hours used on a product.