Accounting Dictionary - Letter V

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Volume-based costing
(also called traditional costing) is a product costing system when an entity allocates factory overhead costs to a single cost pool (e.g., factory overhead) and then uses volume-based cost drivers to allocate factory overhead costs to individual products or services. The entity uses volume-based cost drivers that depend on the number of units manufactured. Cost bases (or drivers) often used include labor hours, machine hours and labor costs.
Go Back
Don't see the term you are looking for? Try searching our entire website:
Not a member?
See why people join our
online accounting course:
Free Study Notes
Download free accounting study notes by signing up for our free newsletter (example):
First Name:
E-mail:
We never share or sell your e-mail to third parties.