- Your research paper is written by certified writers
- Your requirements and targets are always met
- You are able to control the progress of your writing assignment
- You get a chance to become an excellent student!
Essay Details:
Essay text:
Producing and distributing a car
Traditional Costing ABC Costing
Employee pay $2,300 Compute requirements $300
Purchasing costs $1,500 Purchase parts & materials $1,500
Manufacturing costs $7,000 Store parts & materials $800
Distribution costs $200 Inspect parts & materials $1,000
Training $1000 Manufacture car $5,000
Paint car $200
Clean car $100
Deliver car $100
Perform management $3,000
Total $12,000 Total $12,000
Why has ABC costing emerged as an alternative?
? To make use of the differences mentioned above
? Many companies produce a great variety of products and services which consumer different overhead resources
? For many firms, direct labour is no longer an appropriate cost allocation base for overhead
? Companies are marketing new products which differ in volume, batch size and complexity ? therefore a standard cost rate would be inappropriate
? The costs associated with collecting and manipulating data have decreased (largely due to technological advances), making it more efficient to set varied cost bases
What are some advantages of ABC?
? Can identify individual cost drivers to fully understand the cost structure of an activity eg...
Showed 18% of text Buy database access to get full access to all 184 988 essays
Calculate a fair price for your order
Do you need an essay?
A professional team of writers is able to craft custom essays from scratch according to your instructions. We are ready to satisfy writing needs of every demanding customer.
Do you need many essays?
The product provided is intended to be used for research or study purposes. Get instant access to over 200,000 papers.
Common topics in this essay:
- Determine The Primary Activities And Secondary Activities Of Your Organisation. Make A Conscious Decision On Whether Your Organization Should Compete By The Least Cost Strategy Or The Product Differentiation Strategy. Determine The Cost Drivers Of...
- An Interface Between Financial Accounting And Cost & Management Accounting And Some Concepts Of Strategic Cost Management
- Utilize Modelling To Develop And Use Information Systems For Management Decision Making In The Modern Times
- Standard Costing Procedure And Cost Variance Analysis Of Glaxosmithkline Bangladesh Ltd
- Increasing The Supply Of Cost Effective Housing Products
- Management Accounting - Cost Classification
- The Cost of Gasoline versus the Cost of Alternatives
- Advantages and disadvantages of historical cost accounting, alternatives to historical cost accounting
- Bridgteon Industries cost accounting system
- Healthcare Information Technology: Effects on Cost Access and Quality
- Cost Of Tuition Vs. Cost Of Ignorance
- Cost Management
- Cost Management
- Cost Management
- COST MANAGEMENT
Feedback of people who used our services.
Similar Essays:
2 pages / 367 words |
|||
2 pages / 371 words |
|||
4 pages / 942 words |
|||
2 pages / 380 words |
|||
3 pages / 728 words |
|||
1 pages / 275 words |
|||
1 pages / 291 words |