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Activity Independent Cost and fixed activity dependent cost

muhammad_asif2
Explorer
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Hello

In cost centre planning, how an activity independent cost is different from a fixed activity dependent cost? Are not the treatment of the two is same. B/c both ara fixed in nature and do not vary with activity output?

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Answers (1)

Answers (1)

ajaycwa1981
Active Contributor
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Hi

Activity Dependant cost is treated as Variable cost.... When you calculate act price, such costs are only divided by this act type

Activity Independant cost are only for Fixed Costs... These costs are split between all act types of a cost center during Actual Activity Price calculation

br, Ajay M