Activity Based Costing (ABC) is a method of assigning overhead costs based on activities or cost drivers. Drivers are defined as either individual events such as machine setup or as a duration. Standard methods of cost allocation using overhead costing sheets or standard activity allocations cannot accurately represent the costs associated with the drivers. SAP developed the business process cost object to be used to aggregate costs from multiple sources to represent cost drivers. Templates are created to provide accurate calculations for the assignment of driver costs using both business processes and activity types. This session will demonstrate an ABC costing scenario to show how activity-based costs are planned and posted to help you determine if ABC is the right approach for you.
In this session you will learn:
Register today to see how you can effectively use templates to allocate overhead costs with ABC