Activity-Based Costing

Activity-Based Costing - Easily misinterpreted Can become...

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Activity-Based Costing Activity-Based Costing
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A Look at ABC Used to find and determine overhead costs on production Helps with managements financial decisions Helps organize overhead cost into activity cost pools and identify each cost driver
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Benefits of ABC Very organized with data New way over Traditional Costing Techniques Aids financial / Timely decisions Data is easy to understand and follow Can help to capitalize on profits
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Disadvantages of ABC
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Unformatted text preview: Easily misinterpreted Can become costly – collecting data, sorting data, and entering data Some distributors have limited visibility into costs and profitability details References Pretko, Paul. "The ABCs of Activity-Based Costing." Electrical Wholesaling 1 Oct. 2010. General OneFile . Web. 26 Sep. 2011. http://www.accountingformanagement.com/limitations_of_activity_based _costing.htm...
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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Activity-Based Costing - Easily misinterpreted Can become...

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