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Activity-based Costing (ABC)

“Activity-based costing (ABC) has been embraced by a wide variety of organisations

including Citi Group, Coca-Cola, Fairchild Semiconductor, DBS Group, Tata Group and BHP

Billitons, as well as government. ABC is a costing method that is designed to provide

managers with cost information for strategic and other decisions that potentially affect

capacity and therefore “fixed” as well as variable costs. ABC is ordinarily used as a

supplement to, rather than as a replacement for, a company’s usual costing systems”.

Garrison et. al (2012)

Required:

a. Discuss major issues that are often faced by the implementers of ABC systems, from

the point of view of the number of activity and the selection of activity drivers.

b. What are the potential solutions to the issues mentioned in part (a) above?

c. From your answer in part (b) above, do you think the ABC systems will improve a

company's competitive position in the contemporary business environment? Explain.

Assignment Format:

a. Use double space and 12-point of Times New Roman font.

b. The assignment should contain about 3000 – 5000 words (15 – 20 pages)

c. Provide reference using the American Psychological Association (APA) format

d. References should be latest (year 2010 onwards)

Notes:

· Assignments should be submitted according to the due date.

· Plagiarism is not acceptable. If you are not sure what is meant by plagiarism, refer to

the various websites which discuss this matter, e.g.

[url removed, login to view]

Δεξιότητες: Λογιστικά, Research Writing

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