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Activity based costing in a business and why used

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I am having to describe and provide a detailed example of where activity base costing would be used. I'm able to describe ABC in length but cannot come up with a detailed example.
Your assistance in needed to provide a detailed example of where activity base costing would be used.

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Your discussion is 186 words gives you a general discussion about activity based costing and then an example in the health care field.

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Activity based costing is used when products/jobs do not use the same proportional overhead resources and so you want to assign resources based on the actual use of jobs. If you make two product, Blue and Red, with blue being mostly automated and red being a manual process, if you split overhead evenly across ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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