The Benefits of Activity Based Costing

• Adopt a migration approach, recovering
  additional overheads according to an
  implementation plan
• Attach user-defined elements of costs to transition
  points in the purchase, production and sale of
  products
• Appropriate pre-production costs as stock is
  received from purchasing
• Apportion manufacturing costs as stock is received
  from Work in Progress
• Distribute post-production costs through cost of
  sales as the final item is invoiced
• Calculate single batch or item based activities

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