Which is Not a Task Usually Associated With ABC- Activity Based Costing

Activity Based Costing is an acronym that refers to multiple things and it depends on the context. ABC is a method that allocates costs to specific activities, products or services, and tasks within an organization. it is commonly used for cost management, cost analysis, and also decision-making purposes. the main focus of Activity Based Costing is a determine the cost associated with the process and various activities except financial reporting which is involved in financial statements such as balance sheets, income statements, and also cash flow statements. while financial reporting is an essential task of an organization. it is not directly linked and related to the implementation of ABC. but Activity Based Costing primarily focuses on cost allocation and also analysis. in the other side financial reporting deals with financial information to stakeholders, investors, and regulators. the important thing about Activity Based Costing is a task associated with ABC may very depending on the specific organization or industry.

The Task That Is Not Generally Connected With Activity-Based Costing:

Budgeting: ABC may give important data for budgeting. it is not generally used as a planning tool.

Predicting Future Sales: ABC may provide information on the basis of prices of various goods or services. it is most rarely use to estimate future demand.

Financial Reporting: ABC is primarily concerned with attributing expense which is these specific goods or services but it is rarely used for financial reporting.

Managing Human Resources: ABC may provide on the cost associated with certain activities. it is rarely utilized to manage human resources.