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Activity based budgeting(ABB) is a method of budgeting which is based on an activity framework,utilizing cost driver data rather than the more traditional functional cost centres and overhead absorption ratios. ABB involves defining the activities that underlies the financial figures in each function and using the level of activity to decide how much resource [...] Earlier article describes the history/background and the various benefits of using/implementing zero based budgeting system. However,the following are some of the limitations or disadvantages of using zero-based budgeting:- A large volume of extra-paperwork will be created It can be costly and time-consuming process Management may not possess the necessary skills in decision analysis Managers [...] A company manufactures two products,X and Y,using the same equipment and similar processes. Data for the production of these items in one period is shown below: Data: Quantity produced per period X Y Material cost per unit 20,000 10,000 Direct labor hours per unit Question: 1(a) For below table,please fill up the following values (i) Overhead per cost driver unit (ii) Total Overhead per product per activity (iii) Cost per item Activity Total Overheads Total Cost driver units Overhead per cost driver unit Cost driver units per product Total overhead per [...] Business or Corporate Strategy Using The Bolton Group Consulting Matrix The Bolton Consulting Group (BCG) matrix is a model which basically enables one to plan for strategies at each stage at which an individual product-market is perceived be in terms of market growth and the firm’s relative strength (market share). Before going further,[...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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