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Unformatted text preview: Under ABC, idle capacity is typically isolated and allocated to products and services. ABC is suitable for public reporting. With ABC, the "cost objects" are broadened to include not only products/services, but other objects like customers, markets, and so on. The first step in implementing ABC is a detailed study of all business processes and costs. The normal steps in an ABC implementation are (1) study processes and costs, (2) identify activities, (3) identify traceable costs, (4) assign remaining costs to activities, (5) apply costs to objects, and (6) determine per-activity allocation rates....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11