Accumulation Tracing and Allocation

Accumulation Tracing and Allocation


Discussion: The response to the facilitator’s original post should be a minimum of 250 words and must be supported by at least four scholarly sources from google scholar. References should include a scholarly source outside your textbook. References and citations are required for your initial and response posts.

1 Define and discuss the difference between indirect and direct cost. Provide an example of each. In your initial response, please use an external source to support your analysis. Based on your reading, please communicate your own understanding of the requirements. Please also use one external source in each response to your peers.

Complete: The minimum word count for all Complete sections combined is 1,500 words per unit (total assignment). The student’s responses in the Complete section should be supported by at least four scholarly references. Make sure you are using scholarly or industry related journals.

Answer the four questions posed in the case, ATC 5-1 on pages 249-250. Include in your answer the basic differences between volume-based (traditional) overhead application procedures and the ABC method. Describe the characteristics of products which would suggest it would be better to use ABC as an indirect cost allocation method over a traditional method such as direct labor hours. Be sure to use at least four sources and use APA format.