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Cost Systems (Portuguese Version, Brazil)
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Reference: CN-225-PB
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Number of pages: 11
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Publication Date: Jun 5, 2014
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Fecha de edición: Nov 22, 2018
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Source: IESE (España)
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Type of Document: Technical Note
Description
Based on an example, this technical note describes the usual steps involved in designing a cost system. It introduces the typical elements in cost systems and explains how companies can use them to distribute and allocate the costs of resources to different objects. A variation on the same example also allows for illustrating activity-based costing (ABC). The final section analyzes the impact of capacity when it comes to assigning resources using a costing system.
Learning Objective
This note can be useful in any course on Management Accounting that includes a session on costing systems.