Week 4 - Activity Based Costing Article - David Trejo

Week 4 Activity - ActivityBased1 Activity Based Costing Article Analysis David Trejo October 4 2010 ACC349 Cost Accounting Facilitator Diana Meyers

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Activity Based     1 Activity Based Costing Article Analysis David Trejo October 4, 2010 ACC349 – Cost Accounting Facilitator: Diana Meyers
Background image of page 1

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

View Full DocumentRight Arrow Icon
Activity Based     2 Activity Based Costing Article Analysis Activity-based costing (ABC) is based on a model that identifies activities in an organization and assigns the cost of each identified activity resource to all services and products, depending on the actual consumption of each activity. ABC enables a company to precisely estimate the cost of its individual services and products and allow the company’s managers to decide on eliminating unprofitable activities or lower the price of those activities which are found to be overpriced. This paper will summarize the article: Activity Based Costing (ABC), Activity Based Budgeting (ABB), and Implications for Public Sector Organizations. ABC’s main belief is that traditional general ledger (GL) accounting information is useless to a company’s managers who are interested in evaluating the effectiveness of the
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the 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 / 3

Week 4 Activity - ActivityBased1 Activity Based Costing Article Analysis David Trejo October 4 2010 ACC349 Cost Accounting Facilitator Diana Meyers

This preview shows document pages 1 - 3. Sign up to view the full document.

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