ACTIVITY BASED METHOD FOR PURELY FINANCIAL ITEMS

By: Material type: ArticleArticlePublication details: Description: 22-27 pSubject(s): Online resources: In: Management Accountant; 52(5) May 2017Summary: The estimation of the cost of product or service yields innumerable benefits, as it facilitates to improve the efficiency and economy of the operations of the entity. The identification and removal of the ineptitude activities will enable to identify and remove the unprofitable products or services by applying the various doctrines of costing. The inappropriate costing of products or services may lead to erroneous fixation of price and result in fall in demand and consequent loss to the entity.
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The estimation of the cost of product or
service yields innumerable benefits, as it facilitates to
improve the efficiency and economy of the operations
of the entity. The identification and removal of the
ineptitude activities will enable to identify and remove
the unprofitable products or services by applying the
various doctrines of costing. The inappropriate costing
of products or services may lead to erroneous fixation of
price and result in fall in demand and consequent loss to
the entity.

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