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Unformatted text preview: Low and high costs can be easily identified and where they are being incurred. ABC is a valuable tool and an aid in process improvement. Costs of individual activities are assessed, on the basis of resource usage. Can be an aid in determining pricing. Disadvantages of ABC: Can be difficult to implement, especially if the company is using traditional accounting methods. Costing all activities is time consuming and expensive. Too much detail can be provided, thus making it difficult to see the bigger picture. Any activity or event that results in costs being incurred is referred to as a cost driver. In the organization which I work for, the process of filling nail enamel bottles with the various enamel colors is a cost driver....
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This note was uploaded on 10/10/2010 for the course ACC ACC 349 taught by Professor Costaccting during the Spring '10 term at DeVry Irvine.
- Spring '10