Unformatted text preview: systems such as ABC being developed. Non-manufacturing costs form a greater proportion of an entity’s cost. More emphasis is placed today on accurately allocating to cost objects. ABC is preferred over job costing and process costing. In that the activity cost pools developed are more homogeneous and that activity cost drivers used to allocated these cost are better reflections of how these resources are used by cost objects. However, ABC can be expensive to introduce, and care should be paid to ensuring that the benefits obtained form its adoption outweigh implementation and monitoring costs. ABC lead to process improvement as it focuses on the activities used by a cost objects....
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- Winter '08
- Accounting, advanced costing systems