E4-11 Memo - performance, while tracking the costs of...

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Memo DATE: February 29, 2008 TO:  President of Fontillas Instrument FROM:  RE: Benefits of Activity-Based Costing   Activity-Based Costing identifies the most and least profitable products, customers, and channels. This method  helps to determine the true contribution to financial performance. It accurately predicts costs, profits, and  resource requirements associated with changes in volume. It identifies the root cause of the poor financial 
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Unformatted text preview: performance, while tracking the costs of activities and work processes. Activity-based costing equips managers with cost intelligence to drive improvements. This method also facilitates better marketing mix while enhancing the bargaining power with the customer; this in turn helps the company to achieve better positioning of products. Thank you....
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This note was uploaded on 09/20/2008 for the course ACC 349 taught by Professor Christie during the Spring '08 term at University of Phoenix.

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