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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