ACCA考试-《F5业绩管理》重点知识辅导1

Chapter 1

Advanced costing method

Chapter learning objectives

Upon completion of this chapter you will be able to:

§ explain what is meant by the term cost driver

§ identify appropriate cost drivers under activity-based costing (ABC)

§ calculate costs per driver and per unit using (ABC)

§ compare ABC and traditional methods of overhead absorption based on production units, labour hours or machine hours.

§ explain the implications of switching to ABC on pricing, performance management and decision making.

§ explain what is meant by the term ‘target cost’ in both manufacturing and service industries.

§ derive a target cost in both manufacturing and service industries.中 华 考 试 网

§ explain the difficulties of using target costing in service industries

§ explain the implications of using target costing on pricing, cost control and performance management.