Unformatted text preview: The recommendations that we have is JBI should implementing activity-based costing (ABC) system. ABC system is an accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products. An activity-based costing (ABC) system recognizes the relationship between costs, overhead activities, and manufactured products. Through this relationship, it assigns indirect costs to products less arbitrarily than traditional methods. Next JBI should use the information that they can get from the ABC system to determine if there are customers that they should drop or if there are customer service costs that could be improved on....
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- Fall '14