Traditional Costing Method Activity-based costing is the newest means of calculating how overhead expenses are allocated to different products at the time of publication.

By focusing on these extremes, the high-low method helps determine the variable cost per unit and the total fixed cost. This provides insight into how expenses fluctuate with production.

Calculating a standard direct labor cost per unit rate lets you set a tolerance range of direct labor variance costs.

In this regard, I have found that the use of activity-based costing to evaluate AI and knowledge discovery system deployments is a good practice to adopt.