One of the differences between activity-based costing and traditional costing is activity-based costing.

One of the differences between ABC and traditional costing is that there are many homogeneous cost pools in ABC.

1, accurately track the delivery cost.

Compared with the traditional cost method, the difference of activity-based costing is that it tracks and allocates costs in a more detailed and accurate way. Traditional cost method usually allocates the cost to the whole product or service, while activity-based costing allocates the cost to each specific activity or activity.

2. Understand the source and distribution of costs.

In activity-based costing, costs are allocated according to actual work or activities, not according to the overall products or services. This method can determine the cost of each activity more accurately and help managers better understand the source and distribution of costs.

3. Break down costs.

Another difference is that activity-based costing pays more attention to the decomposition of costs, which can better identify and manage the cost drivers of different activities or activities. This helps managers to better understand which operations or activities contribute more to the total cost when making decisions, and make adjustments when necessary.

Assignment and distribution methods and factors of traditional basic law;

1, emphasizing the tracking and allocation of activity costs.

Activity-based costing emphasizes the tracking and distribution of activity-based costs. It links the cost of the organization with the actual activities, and allocates the cost according to the consumption degree of the activities. In contrast, the traditional cost method mainly allocates costs according to direct labor and direct manufacturing expenses, and does not directly link costs with activities.

The basic idea of activity-based costing is that the cost of products or services is caused by a series of activities, and the cost of products or services can be calculated more accurately by tracking and allocating activity-based costs more accurately.

2. Adopt multilevel distribution.

In the way of cost allocation, activity-based costing adopts multi-level allocation. It divides the cost into multiple levels and allocates the cost according to the usage and the basis of activities. This multi-level allocation can allocate the cost to the product or service more accurately, thus calculating the cost of the product or service more accurately.

In contrast, the traditional cost method usually adopts simple cost allocation methods, such as direct labor cost or direct manufacturing cost allocation, ignoring the more complicated cost structure and other factors that affect the cost.

3. Pay attention to accurately measure the cost drivers.

Activity-based costing focuses on the accurate measurement of cost drivers. It can understand the causes of activity-based cost by collecting and analyzing the data of various cost drivers, and provide basis for cost control and decision-making. This can help enterprises better understand the cost structure and find out the key drivers of cost.

In contrast, the traditional cost method is relatively simple in the measurement of cost drivers, and usually only pays attention to a few direct cost factors.