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Essay Details:
Essay text:
Several small orders require more data entry operators time. This can be solved by adding extra costs per order, for example administration costs.
Actually, there is no traditional or ABC costing system visible. Now, the question is which system would be the best to implement here.
Because of the comprehensive product line, an ABC-system would be the most accurate. A traditional cost system would lead to cost distortion.
Question 2
Figure 1 diagram ABC cost system
• The cost of data entry:
We calculated the percentages by using the data entry operators time:
EDI: 500/10.000 = 5 % ? cost = 5 % of 800...
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