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Activity dependant planning and Activity independent planning

Former Member
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Hello gurus,

Can anyone please explain the difference between the Activity Dependant Planning and Activity Independant Planning with some examples

thanks

rihana

Please, search Web

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Answers (1)

Answers (1)

Former Member
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Hi Rihana,

Activity indipendent planning : Activity-independent cost planning covers both primary and secondary costs, but does not refer to a specific activity type. Eg : internal and external distribution

Activity-dependent planning : Activity-dependent planning of primary and secondary costs, on the other hand, enables you to plan both fixed and variable costs. You may require this functionality if your costing system uses flexible standard costing based on marginal costs. In this release you can carry out flexible standard costing based on full costs.

This means fixed costs are used to calculate the cost rates and are in effect converted to variable costs.

Regards,

Shivalli