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Unformatted text preview: considering this new option. They are: ABC costing only assigns manufacturing overhead costs consumed by those products, ABC costing uses non-volume related allocation bases, and ABC costing directly traces shipping costs to products and includes non-manufacturing overhead costs caused by products in the activity cost pools that are assigned to products. To determine whether or not switching to the ABC system is worth the increase cost is mostly dependent on whether the company will be able to increase their efficiency enough to offset the cost. More times than not the benefits of the ABC system outweigh the negatives because managers are able to have more accurate and easily interpreted information....
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This note was uploaded on 04/02/2009 for the course BUAD 250B taught by Professor Jackson during the Spring '07 term at USC.
- Spring '07