Activity-based costing is the system that uses cost drivers to allocate costs.
Cycle-time is the amount of time that the customer must wait for their order after the order has been placed.
In variable costing, fixed overheads are expensed in the period that they are incurred and cost drivers are not used. This is the same method as direct costing.
In direct costing, fixed overheads are expensed in the period that they are incurred and cost drivers are not used. This is the same method as variable costing.
|
