Scenerio: Accounting theory position is that every project has to have full cost reporting. A business has to decide which type of project cost reporting it will use. Your management cannot decide...

Comparing Activity Based Costing and Job Costing
Assuming the company is going for a project , where it needs to understand the cost involved in
individual activities, then the company may prefer to follow activity based costing(ABC).
Reason being , an activity based based costing treats individual activity as fundamental cost
objects and assign costs to other activities like products and activities (Tolleson, 2013). The
other reasons for preferring activity based costing over job costing, because of the following
reasons:
(i) The cost of each activity is considered to calculate the product costs and the services
rendered and so on.
(ii) ABC considers many indirect cost pools, where every cost is measured and
monitored.
(iii) Greater accuracy of costs (Rose Johnson, 2013).
Sl.
No
Activity Based Costing Job Costing
1 A method of cost allocation to products
and services. Considering to the extent of
activity is used by product, the amount will
be charged...