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Activity-based costing

Unit 4: Accounting for Overhead CostTopic 3 of 3
Browse the Cost and Management Accounting syllabus

Cost and Management Accounting

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What the syllabus expects

  • Concept, importance, features and elements
  • ABC versus traditional costing
  • Overhead-absorption procedures under ABC

Activity-based costing

Bachelor of Business Studies (BBS) — Second Year

Subject: Cost and Management Accounting (MGT 212)

Unit 4: Accounting for Overhead Cost

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of activity-based costing.
  • Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

  • Concept, importance, features and elements
  • ABC versus traditional costing
  • Overhead-absorption procedures under ABC

Detailed Microsyllabus

  1. Activity-based costing

    1. Activities, cost pools and cost drivers.
    2. Features, importance and elements.
    3. Differences from volume-based traditional costing.

  2. ABC procedure

    1. Identify activities and assign resource costs.
    2. Calculate activity rates and charge products or services.
    3. Interpret cost differences and driver-selection limits.

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 31-34.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.