Activity-based costing may be used in any type of organization. The premise of ABC is that activities cause costs. Since all organizations engage in activities, these activities may be associated with costs they incur.
An activity cost driver is the measure of the activity that causes costs to be incurred. For instance, the activity driver for the activity “printing checks” might be number of checks printed. Anything to which costs would be assigned is considered a “cost object.” Common cost objects are units of product, product lines, departments, activities, and projects.
What types of activities relates to Walmart?
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