This PPT slide, part of the 29-slide Activity Based Costing PowerPoint presentation, presents a detailed breakdown of activity costs associated with various management accounts. It categorizes costs into distinct activities, allowing for a clearer understanding of financial allocations. The table is structured to show costs across five key activities: Order Taking, Manufacturing, Packaging, Delivery, and Customs.

Each management account is itemized, revealing specific expenditures. For instance, the cost of Gadgets/Gizmos is allocated entirely to Manufacturing, amounting to $400. Wages, salaries, and benefits total $1,000, distributed across multiple activities, indicating a significant investment in human resources. Delivery and freight costs are also highlighted, with $120 allocated to Packaging and $280 to Delivery, emphasizing the importance of logistics in overall cost management.

Overhead costs are broken down into three categories: Facilities, Insurance, and SG&A. Facilities incur a total of $180, with the highest allocation of $100 going to Manufacturing. Insurance costs are relatively modest at $100, while SG&A accounts for $120.

The total cost of sales is summarized at the bottom, providing a comprehensive view of the financial implications of these activities. This breakdown not only aids in understanding where resources are being utilized, but also serves as a foundation for future cost management strategies. The insights derived from this analysis can guide decision-making processes, ensuring that investments align with organizational goals.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Costing Management Accounting Activity Based Costing