Description
Assignment 1: Activity-Based Costing (ABC) in Service Industries
Due Week 3 and worth 300 points
Research a U.S. company in the service industry with e-commerce activities.
Write a five to six (5-6) page paper in which you:
- Describe the company you researched in one to two (1-2) paragraphs.
- Discuss how a time driven ABC cost system can be implemented in the company you researched and the benefits that the use will yield to the business performance.
- Assess how using an ABC system can provide a competitive advantage to the company in the market space it operates and the resulting impact to the business performance.
- Examine the potential impact of time-driven ABC costing on services provided online with those provided through traditional channels, considering how this knowledge will impact decisions made by management about these services.
- Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
- Analyze the concepts of job order costing, process costing, and activity-based costing.
- Use technology and information resources to research issues in managerial accounting.
- Write clearly and concisely about managerial accounting using proper writing mechanics.
Explanation & Answer
Attached.
Running Head: ACTIVITY-BASED COSTING
Activity Based Costing in the service Industry
Name:
Institutional Affiliation:
Date
1
ACTIVITY BASED COSTING
2
The US economy relies heavily on the service industry. The service industry is,
therefore, a strong pillar to the progress of the US economy. Initially, in the 19th century, the
manufacturing sector took the lead when it came to contribution to the economy of the United
States. Overtime, the service industry too lead and has contributed an estimated 70 percent of
the total employment opportunities in the United Sates. For this assignment, I will focus on
Amazon.com and how it provides cloud computing services. The company started off as an ecommerce firm dealing mainly in household goods and electronics and has scaled and
expanded its services to the provision of the information technology solutions on online
platforms.
Amazon.com is ranked world’s largest information technology service provider
regarding revenue. The company has diversified its services to include a series of services and
products all of which are provided online. The first AWS online products were launched in
2006 to provide client-side applications and online services for websites. The company has
grown enough to establish a subsidiary called Amazon Web Services which specifically deals
with the provision of the cloud computing services. The web services (often called remote
computing services or cloud services) provided by Amazon have gained popularity overtime,
and most companies and individuals are today relying upon them in the carrying out their
operations. The company initially started off with core function offering Infrastructure-as-aservice (IaaS), and then it progressed to introduce the comprehensive Platform-as-a-Service.
The target audience for the cloud service provided by AWS are mainly developers, small to
medium Enterprises and System administrators. Some of the cloud services provided by
Amazon Web Services include:
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