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Unformatted text preview: a) The limitations • Still have some facility level costs • Still not all costs relevant to the product – all period costs excluded ac653d3b304968289242ccd6350a6329863841d8.doc PAGE 1 OF 2 ACCT 250 – ACCOUNTING FOR DECISION MAKING NOTES – CHAPTER 5A SPRING 2008 • ABC is VERY costly and time consuming to implement b) The benefits • More accurate cost information which yields: o Better measures of profitability o Better decision making o Identification of improvement opportunities o More accurate cost estimation • Greater ability to measure the cost of unused capacity 3) Determining the activity level • Unit level • Batch level • Product level • Facility level • E5-30 ac653d3b304968289242ccd6350a6329863841d8.doc PAGE 2 OF 2...
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- Spring '08
- Decision Making, DECISION MAKING NOTES, CHAPTER 5A SPRING