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How do you calculate activity-based accounting?


Activity-based accounting (ABC) is a method used to allocate overhead and indirect costs to specific activities or products based on their consumption. To calculate ABC, first identify the activities involved in the production process. Then, assign costs to these activities by determining cost drivers, such as machine hours or labor time. Next, compute the cost per driver by dividing the total activity cost by the number of driver units. Finally, assign these activity costs to products based on their usage of the drivers. For expert assistance with ABC, reach out to Activity Based Accounting Assignment Help from BookMyEssay for accurate guidance and support.


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