Posted: February 1st, 2014

Absorption and activity based costing

We need power point presentation about this task including some examples ( this is in UK) so please note the differences between UK and USA
TASK 1
You have started work as a manager at a local privately owned company. It has a board of directors comprising: a sales/marketing director, a production director, a purchase director, and a HR/IT director. They do not at present have a finance director, this role being undertaken by the managing director of the company.
Until recently they have used marginal costing as a way of costing their products but their managing director has just finished a course of financial management and wants to know more about absorption and activity based costing.
He asks you to prepare a presentation for his board outlining the following:
– What is the basis of absorption and activity based costing?
– What are the similarities/differences between the two?
– What are the advantages/disadvantages of the two methods?
– In what circumstances would each method be most appropriate?
. Word count equivalent of 500 words