ACCOUNTING 201-MODULE-4-SLP - There are several cost...

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ACCOUNTING 201 MODULE 4 SESSION LONG PROJECT DR. WENDY ACHILLIES Accentia Biopharmaceuticals 8.5 million financing – 17 June 08 Researching/Laboratory Testing This is a tough organization to discuss Activity Based Costing because no information was available on that topic. If you consider this organization you can associate some variable and fixed overhead costs. In order to conduct proper research and testing there has to be a considerably amount of supplies and equipment. Labs must be rented and labor may be at a minimum on the supervisory level. Even though there is no true data to justify the expensive nature of these projects, I will try to elaborate where the cost would come from. Research and Development is the driving force.
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Unformatted text preview: There are several cost drivers that are impacting key areas of R&D. One cost driver is longer R&D timelines; another is an increase in the rate of attrition for new drugs and another cost driver could be the increase in the cost of key R&D components. Another factor to consider is the cost of a new drug. Different estimates are not surprising given the complexity of variables required to arrive at such cost estimates: therapeutic area variable costs, cost per patient and follow ups. All these estimates take into account cost incurred before earning any returns. Overall, this industry is considered a billion dollar business and there are many outlaying factors that will definitely affect the Activity Based Costing....
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This note was uploaded on 10/26/2011 for the course ACC 201 taught by Professor Garywashington during the Summer '11 term at Trident Technical College.

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ACCOUNTING 201-MODULE-4-SLP - There are several cost...

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