About this document
Cross-Subsidization in Costing Systems by Fahim Ashab Chowdhury is a document available to read on EtoBox.
Broad averaging of indirect costs can lead to cross-subsidization between products. As product diversity and indirect costs increase, and competition intensifies, companies have moved to more refined costing systems like activity-based costing (ABC). ABC assigns costs based on the activities consumed by each product using multiple cost pools and drivers. It provides a more accurate picture of costs than simple costing schemes and can be applied in service and merchandising companies as well.
- Author
- Fahim Ashab Chowdhury
- Language
- EN