ABC Accounting: The Managerial Effects
Location
CSU
Student's Major
Accounting and Business Law, Finance
Student's College
Business
Mentor's Name
Buddhadev Roychoudhury
Mentor's Department
Management
Mentor's College
Business
Description
The primary focus of our study and presentation is Activity-Based Costing, also know as, ABC accounting. ABC accounting is a cost accounting system that focuses on the various activities performed in an organization and collects costs on the basis of the nature and extent of those activities. This approach is used by many industries having high overhead costs that are not proportional to the unit volume, production of a wide variety of products, and significant automation. These three aspects among others indicate that the use of ABC accounting would be beneficial to the company. The purpose of our research is to inform others about the following: -What activity-based costing is. -How activity-based costing is implemented. -What industries are using activity-based costing. -What effects activity-based costing has on management. Management has become a basis of all business, and through research we hope to see what effects activity based costing has on management. Our primary focus will be the benefits and costs of applying ABC accounting as a management tool in businesses. Through our presentation and research we will be able to make others aware of the need for more accurate cost predictions as technology is being enhanced and global competitiveness is increasing. Activity-Based Costing allows for more accurate cost predictions, thus creating a competitive edge.
ABC Accounting: The Managerial Effects
CSU
The primary focus of our study and presentation is Activity-Based Costing, also know as, ABC accounting. ABC accounting is a cost accounting system that focuses on the various activities performed in an organization and collects costs on the basis of the nature and extent of those activities. This approach is used by many industries having high overhead costs that are not proportional to the unit volume, production of a wide variety of products, and significant automation. These three aspects among others indicate that the use of ABC accounting would be beneficial to the company. The purpose of our research is to inform others about the following: -What activity-based costing is. -How activity-based costing is implemented. -What industries are using activity-based costing. -What effects activity-based costing has on management. Management has become a basis of all business, and through research we hope to see what effects activity based costing has on management. Our primary focus will be the benefits and costs of applying ABC accounting as a management tool in businesses. Through our presentation and research we will be able to make others aware of the need for more accurate cost predictions as technology is being enhanced and global competitiveness is increasing. Activity-Based Costing allows for more accurate cost predictions, thus creating a competitive edge.
