1. What is Difference Between Traditional Cost & Activity Based Costing?
2. What is Difference Between Traditional Cost & Process Costing?
3. What is Traditional Cost Analysis?

1. What is Difference Between Traditional Cost Analysis & Activity Based Costing?

Traditional Costing tends to spread overhead based on simple drivers like sales dollars, units, etc. This often results in high volume products/services being over costed and  low volume products and services being under costed.

Activity Based Costing calculate costs of activities and then determines how much of each activity your products/services/customers use. This has been shown over 20 years to be more accurate than traditional costing.. . .

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2.What is Difference Between Traditional Cost & Process Analysis?

Traditional Costing tends to spread overhead based on simple drivers like sales dollars, units, etc. This often results in high volume products/services being over costed and low volume products and services being under costed

Process Analysis starts by defining the cross functional processes of an organization

• Sales and Marketing,
• Research and Develop products/services
• Hire and Train employees
• Procure, Receive, and Pay for materials and supplies
• Provide Financial Information
• Provide Information Technology
• .
• .
• .
•  

Performance analysis is done at the process level for cost, cycle time o processes and quality of processes.

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3. What is Traditional Cost Analysis?

Traditional cost analysis tends to focus on

• .department costs
• actual costs versus budget
• actual costs versus forecast
• cost trends

Email below or call John Antos or Steve Peacock at 972-980-7407 to find out how to better analyze your products/services, customer, call centers, processes, and channels of distribution costs. 

Find Out How We Can Help You Obtain More Accurate Costing

Have Consultant contact me Name Title Company Address E-mail Phone Problem or Challenge Phone: 972.980.7407 email: assistu@valuecreationgroup.com Value Creation Group, Inc. 7820 Scotia Dr. #2000 Dallas, TX 75248