Week 3 - Individual assignment - David Trejo

Week 3 - Individual assignment - David Trejo - 13. What are...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 13. What are the benefits of activity-based costing? • Managers are equipped with cost intelligence, which aids in the driving of improvement(s). • Costs are accurately determined. • Contributors and/or detractors from financial performance are determined. • The tracking of costs and WIP are made easier. • Better marketing mix is facilitated. • Identifies the most and least profitable customers. • Identifies the most and least profitable products. • Better positioning of products is achieved. • Facilitates in better marketing mix. • Enhances the bargaining power with customers. • Visiblity of non value-added activities and waste. 14. What are the limitations of activity-based costing? • Data collection process for activity-based costing is time consuming. • Capital expenditure can be a road block for some companies. • The system becomes very transparent. • Measurements necessary to implement the system can be difficult to ascertain. • It is left up to management to estimate cost activity pools and to determine & measure cost drivers fo • Activity cost rates need to be regularly updated. • Can be costly and difficult to understand, epecially if more detail is provided. or these pools.or these pools....
View Full Document

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.

Page1 / 7

Week 3 - Individual assignment - David Trejo - 13. What are...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online