1 HI5017 Managerial Accounting Trimester 1 2018 Individual Assignment Assessment Value: 20% Instructions: 1. This assignment is need to be submitted in accordance with assessment policy stated in the...

Activity Based costing – Navitas Limited
Course Name
Course Date
Student’s Name
ACTIVITY BASED COSTING: NAVITAS LIMITED    8
Activity based costing – Navitas Limited
Table of Contents
Contents
Executive Summary    3
Introduction    4
Activity based costing    4
Features of activity based costing    5
Company’s mission and objectives    5
Company’s corporate strategies    6
How Activity based costing can assist in achieving the company’s strategies    6
Other management tools    7
Recommendation and Conclusion    8
References    9
Executive Summary
Costing system is one of the most important aspect which helps in determining the cost of different cost objects. The companies uses different costing methods for determining the cost of the objects. The different methods that is being used by the companies to determine the costs of different products includes step down methods, reciprocal method, and direct method.
Navitas Corporation limited is one of the biggest education provider of Australia. The company provides different educational services to the domestic and the overseas student, The Company has always believed in transformative power of education in the lives of the people.
For implementing the activity based costing, the company needs to analyse the activities which are involved in providing the services. For this, the company will have to analyse the cost that are associated with the courses that the company provides. The company needs to implement the costs of different activities like teaching costs, counselling costs, material costs and the other overhead costs which includes the electricity, utilities and other costs.
For the service company, I would rather recommend for the time based activity costing as it will help in the analysis of the costs much more effectively as compared to other tools to analyse the costs.
Introduction
Costing system is one of the most important aspect which helps in determining the cost of different cost objects. The companies uses different costing methods for determining the cost of the objects. The different methods that is being used by the companies to determine the costs of different products includes step down methods, reciprocal method, and direct method. One of the best methods that is being used to analyse the cost of the products includes the Activity based costing. Activity based costing has helped different organizations to determine the understanding of the costs and estimating and understanding the true value of costs of the items that are produced by the company. In this report we will analyse different aspects of activity based costing and how activity based costing can help an organization to meet its goals and objectives.
Activity based costing
In the year 1980’s activity based costing gained importance and existence and has helped different manufacturers to accurately capture the cost of the products that are manufactured. Activity based costing is the costing method which is applied on the industrial products and the other manufacturing companies which helps in applying the costs to the products that are produced by the company. For implementing the activity based costing, the company needs to analyse different activities through which the production of the product passes.
Activity based costing collects the overhead costs in the different cost pools which are related to the activities of the production and then on the basis of the cost drivers, the cost are allocated to the products. It is important for the company to think and analyse all the steps of the production that are required in the production of the products.
Features of activity based costing
Activity based costing collects the overhead costs in the different cost pools which are related to the activities of the production and then on the basis of the cost drivers, the cost are allocated to the products. It is important for the company to think and analyse all the steps of the production that are required in the production of the products. Some of the...