Executive Summary With a group of highly intelligent and creative consulting team, we have successfully created an analysis of the average cost per job for the OMICRON Company. We have decided to closely examine the three primary products OMICRON focuses on; Assurance and Audit (A&A), Tax, and Valuation and Financial services (V&F). The answers to our quest for the search of the most accurate analysis came from using its current single costs-driver and the proposed based costing system with multiple cost drivers. Overview • An analysis of how average cost per job for A&A, tax, and V&F jobs will differ under two costing methods. • The accuracy and cost effectiveness of the proposed system with multiple allocation bases. • Implementing the proposed multiple allocation base system and principles of activity-based costing. • An evaluation of the alternatives for the activity-based costing system. • The cost for the firm if it were to take a pro-bono job.
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This note was uploaded on 03/08/2009 for the course ACCT 250B taught by Professor Shames during the Spring '08 term at USC.