Easy as ABC
13 September 2012
Fixed overheads have become an increasingly significant production cost. AT explains how activity based costing can help keep them under control
The variable costs of material and labour used to form the lion's share of production costs. Fixed costs were relatively insignificant. But today fixed costs and huge overheads play a more important role. This trend has been encouraged by changes in technology. In furniture manufacture, for example, workers no longer use machines to enhance their own traditional...