Cost Management

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Title: Cost Management

Essay Details:

Subject: Business

Author: Elaine S

Date: June 5, 2015

Level:

Grade: A

Length: 2 / 374

Essay text:

With 25% of the warehouse space, the bicycle business makes 12% of the total sales for the company. In order to make such a strategic decision the costs have to be accurate and activity-based. One system that aids in this decision is the Activity-based costing system (ABC) (Horngren, Sundem, & Stratton, 2005). This system first accumulates all direct costs into the highly performed activities. Then it allocates those activity-costs groups to believable and dependable cost drivers. Based on financial data this system helps the company make a more strategic decision. I strongly recommend this company invest in this system...

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