Description
Continuing the scenario from the Module 2 discussion, think about the costs to manufacture your product. Review the concepts of activity based costing.
- If you implemented activity based costing for your division, what additional costs would you consider as manufacturing costs? How would you allocate those costs to your division?
- Would activity based costing give you a more or less realistic picture of your divisions costs incurred to produce revenue?
- If you chose to not fully implement activity based costing, what would you have learned about your department’s costs that would help you operate more profitably?
Explanation & Answer
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1
ACTIVITY BASED COSTING
ACTIVITY BASED COSTING
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2
ACTIVITY BASED COSTING
Activity Based Costing
Activity-based costing commonly referred to as (ABC) is a unique accounting design
whereby resources are allocated to products or services in production to make them viable.
Resources must be allocated to areas that are technical to make a company manufacture or
produ...
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