Question

Read "Relevance Added: Combining ABC with German Cost Accou Friedl, PROF. DR., Hans-Ulrich Kupper, PROF. DR., and Buckhard Finance (June 2005), in the Readings and Cases Chapter 11 This article describes ABC costing and German cost accounting (G methods. GPK is presented as a superior method for relevant cost the use of both ABC and GPK. Answer the following questions: 1. What is GPK? 2. How does GPK compare to ABC costing? 3. What are the key elements of GPK? 4. What are the two types of cost centers used in GPK? Explain th

Answer 1

LG PK GesTnan costhog Method designed to gentrate Riffectine and aceurat Manaqerbl Cos Cateulatron For a speetic produpt o semrce G PK sused t0 tostmg benefe ts n the Method fretd of poajeet Management, tvaditvonal ard mpooreng feharcral stendaads GPK (ostirg ABC Conse'dess GП PK арриеs молginal osting ABC conven tonal forr ng-tennc deersion makeg hort-tey deers ons (ri?) Both fexed & vasable are taken ehto vaniabe COstS Cost s Conse'desateor) Costs ase ot assigned Hute (ir) Cost ame assegned to overhead aetiv? tr'es and also crdereet Costs. to oreshead aettretres. Ga РК - ELements Of 31 deferent Costs Tt Sepasatl Leke matUrials, labous, depreedatior ett Cost tpa aetoenteng Tt determenes the Uatems hep aetountimg Cost Centlr ostwean vaurabe Cos ts & outputs. Taaz,ap rupaed subissD aetounting psoduct Lost Labourt ahd Materal, drreet Oneshead Costs Сomtoybutron мargin Cos ts Sales (?v vaxrabu Tt povedes ghort-teoM roceedtngs deets?n Makeng to the Management

en GPk - types of Co st Centeos deveety Cost CanteOS generates output Sale poodCts whiCh is lared to to Manufaeturing brocess Secondary Cos t Centers tncludes HR Serv'es, thРorмаtton teohroloyy ard Other toarning aettr t?es . Al the Best Poo your Exam !