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Case+2.Activity+Based+Costing+docx - asked to identify...

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Case 2-Activity-Based Costing (ABC) 1. Make sure you review the annual report including the managements’ discussion of the business. 2. There are common activities for manufacturers, retailers and service companies. Identify four activities and their cost drivers that would be the same for your company and the others in the same category. 3. The CFO of your Company is considering implementing ABC and has asked your group to list five of the Company’s most important indirect activities (you may first list the detailed activities and then include them in the appropriate groups) Your team is also
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Unformatted text preview: asked to identify drivers of those activities, keeping in mind that it must be feasible to measure and record the values of the drivers. Justify your choice of drivers and discuss other driver candidates and why they were not used. 4. Identify, if any, companies that operate in the industry of your company that utilize ABC costing. 5. Prepare a memo to the CEO that identifies the activities and drivers, with brief explanations why these activities are the most critical, and why the drivers are appropriate and measurable. Incorporate your finding for item 4 in your memo as well....
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