Chapter 13 – Logistics Costing
ABC V/S MBC | ||||||||||||||||||||
ABC |
MBC |
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Cost of individual activities is measured after the | Cost of each mission is estimated well in | |||||||||||||||||||
actual performance. Hence, ABC is reactive in | advance. Thus, making in proactive in nature | |||||||||||||||||||
nature | ||||||||||||||||||||
Objective is to improve the performance next | Objective is to improve current performance by | |||||||||||||||||||
time by learning from last performance | having proper planning in advance. | |||||||||||||||||||
ABC is analytic i.e. it analyses present activities | MBC is a planning tool as it formulates plans for | |||||||||||||||||||
for a particular period | budgetary control of each mission/output. | |||||||||||||||||||
Deals with cost related to individual activities | Deals with cost related to whole mission likely to | |||||||||||||||||||
be distributed |
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