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The difference between volume based and activity-based costing, explained by our business accountants in SydneyVolume based costing is the traditional form of costing that our business accountants in Sydney have witnessed when dealing with most clients. However, our small business accountants in Sydney have also come across activity-based costing, in which they will describe in further detail below: Volume Based Costing Activity Based Costing Our small business accountants in Zetland see activity-based costing as a superior form of overhead allocation because it links all overhead costs to products using specific activity drivers. Activity based costing also uses more specific overhead driver costs, not just one driver. In conclusion, activity-based costing provides a more precise allocation of over head costs in comparison to volume-based costing. For more information about volume-based and activity-based costing, please contact our business accountants in Sydney today. |