UNIT 2 FINANCES

LEVERAGE AND EXCESS

RISK ACIVITY BASED Frederick Taylor
COSTING

Clear About --- Direct Costs

Activity
Father of cost Accounting Determine a company´s cost of production
Based Cost Accounting Vague About --- Indirect Costs
pag(159) Costing

Identefy measuces every aspect of every transaction

Accounting Systems

1) Identefy all the direct and indirect activities and resources

A)Much more precise 2) Determine cost per indirect activity

EX. Bank tever

B)Find out which acctivities create a costs 3) Identefy the cost drivers for each activity Factor that influences or
create costs
Cost Driver