ZuoTi.Pro
Question

absorption costing and activity based costing in real life settings

Why would a company choose to sepend the time and money to implement an ABC costing system.  What are the advantages and disadvantages of each type of costing system?  Why do you think that accountants have developed so many types of costing systems. How do costing systems facilitate companies to grow? Why is important that all the corporate officers have an understanding of the costing system being used.  How might it impact their departments (give examples of at least two departments)

Managerial-Accounting   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
absorption costing and activity based costing in real life settings
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Activity-Based Costing Define activity-based costing (ABC) systems. What benefits does implementing an ABC system bring to...

    Activity-Based Costing Define activity-based costing (ABC) systems. What benefits does implementing an ABC system bring to the company? Explain at least two benefits. What are the disadvantages to implementing an ABC system? List and explain at least two. Would the proposed changes make ABC a universally applicable costing method in your opinion? Why or why not? Elaborate your response. Non-Financial Performance Many city and county governments are discovering that you can control only what you measure. As a result, many...

  • Activity-based costing, or ABC, is a costing method that managers can use for internal cost reporting...

    Activity-based costing, or ABC, is a costing method that managers can use for internal cost reporting and decision making. While ABC isn't allowed for external financial reporting, companies may find it useful to enact an ABC system to more effectively analyze cost data. ABC systems excel at being able to assign costs to products that are manufactured and supported by many different types of activities. Question is, would this be very expensive? And, is there a lot of training involved?

  • Suppose an organization uses the activity-based costing (ABC) model. How do you think this model differs...

    Suppose an organization uses the activity-based costing (ABC) model. How do you think this model differs from traditional costing approaches? What do you see as advantages or disadvantages for this healthcare organization?

  • Companies can choose from different costing methods: process/product costing and activity-based costing. Think about a company...

    Companies can choose from different costing methods: process/product costing and activity-based costing. Think about a company you know and answer the following: What are the differences between the two costing methods, and how do these apply to your company? What are some ABC cost drivers the company might use? How could the costs differ if one method is chosen over the other? Which method would you recommend for your company, and why?

  • INTERNATIONAL BUSINESS course short essay questions from Chapter 1-4: 1. Compare and contrast World Bank and...

    INTERNATIONAL BUSINESS course short essay questions from Chapter 1-4: 1. Compare and contrast World Bank and IMF. 2. How much world trade is there and what benefits might a company have from the globalization of markets. 3. Explain globalization of production and its benefits. What type of management should a company study if it commits to globalization of production. 4. What are the two types of family group?  Why does the family play an important role in affecting business activities? 5....

  • Apogee Accountants is an accounting firm located in northern New South Wales. Steve Trust is a...

    Apogee Accountants is an accounting firm located in northern New South Wales. Steve Trust is a Managing Partner in the firm and has growing concerns regarding the impact of Enterprise Resource Planning (ERP) systems has upon Apogee's future revenue. As such Steve has asked you to to undertake some research into ERP systems and how they have affected the accounting industry. He has requested you supply a five (5) minute presentation to be played at the next staff meeting using...

  • nts) 16. Eaton Company uses activity-based costing to allocate overhead costs to products. When figuring the...

    nts) 16. Eaton Company uses activity-based costing to allocate overhead costs to products. When figuring the cost of ordering raw materials, which of the following is likely the best cost driver for this activity? a. Number of orders placed. b. Weight of the parts ordered. c. Square footage of the purchasing department area. d. Direct labor cost e. None of the answer choices is correct. e comfc future for safet materia local h e factor ta rela 17. Which of...

  • You learned about job order costing and activity-based costing. Each method deals with manufacturing overhead in...

    You learned about job order costing and activity-based costing. Each method deals with manufacturing overhead in a different way. There are various implications with how costing is done. The following items will help stretch your thinking a bit. Why should an employee have some understanding of costing if they are not in the accounting department? Explain how the method of costing used will impact the company with: (A) the quoting of customer jobs and (B) gross margin/profit on the Income...

  • 5-26 Activity-based costing, manufacturing. Decorative Doors, Inc., produces two types of doors, inte- rior and exterior....

    5-26 Activity-based costing, manufacturing. Decorative Doors, Inc., produces two types of doors, inte- rior and exterior. The company's simple costing system has two direct-cost categories (materials and labor) and one indirect-cost pool. The simple costing system allocates indirect costs on the basis of machine- hours. Recently, the owners of Decorative Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Decorative Doors production for the most recent year...

  • : Different costing methods provide companies with different options for categorizing and calculating costs. Managers and...

    : Different costing methods provide companies with different options for categorizing and calculating costs. Managers and cost accountants should understand the differences between costing methods so that they can choose and properly implement the method that best suits their needs for decision making. For this short paper, you will compare the characteristics of job costing and process costing methods and give examples of when and why each might be used. You will also address the use and benefits of costing...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT