buad 250b project 1

buad 250b project 1 - BUAD 250B 2/17/10 Professor Riley 1....

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BUAD 250B 2/17/10 Professor Riley 1. Allocation Base used for non-job related costs Average Cost per Audit Job Average Cost per Tax Job Average Cost per MAS Job Current Single Cost- driver system $12,734.45 $1,499.55 $11,359.84 ABC system with multiple cost drivers $8,072.30 $2,627.88 $5,933.47 DIFFERENCE $4,662.15 -($1,128.33) $5,426.37 2. The differences that have occurred between current single cost-driver system and the ABC system with multiple cost drivers are pretty substantial. Single-Cost driver does not take into account everything that the ABC method does. Single-cost driver basically averages out the non-job and job related costs and the average cost per job is essentially an estimate. The ABC method on the other hand is much more specific and takes more of the non-job and job related costs into account leaving you with a much more accurate number for the average cost per job. The differences that occur when using single-cost driver instead of ABC are an overestimate of $4,662.15 for average cost per audit job, an
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This note was uploaded on 09/15/2010 for the course BUAD 250B taught by Professor Jackson during the Spring '07 term at USC.

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buad 250b project 1 - BUAD 250B 2/17/10 Professor Riley 1....

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