Actual costing
Revision as of 18:17, 9 July 2020 by QiratH (talk | contribs) (Created page with "Actual costing is a costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs an...")
Actual costing is a costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs and allocates indirect costs based on the actual indirect-cost rates times the actual quantities of the cost allocation bases.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Actual costing. A costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs and allocates indirect costs based on the actual indirect-cost rates times the actual quantities of the cost allocation bases.
