Activity based costing analysis in a firm

The project presents a procedure of Activity Based Costing. To follow a proper implementation roadmap, many different methodologies are analyzed. Activities are identified initially and activity costs were found before the product costing was done. After the activity costing was finished, products were cost by the help of these activity costs. ABC provides a better insight of the product costs and it also explains, ?Which product consumes which activity?. Addition, traditional costing method and ABC were compared in numerically and graphically. Besides, the traditional costing system leads to inaccurate costing information because of without depending production amount which is used in ABC when the costs are counted. The aim of this project is to highlight some poor points of traditional costing methods and obtaining an S-Curve that indicates the under-cost and over-cost products of the firm.Keywords: Activity based costing, activity Based management, traditional costing