Open Always
Email: support@globalcompose.com Call Now! +1-315 515-4588
Open Always
Email: support@globalcompose.com Call Now! +1-315 515-4588

Sample Essay on Activity Based Costing

This sample paper on (Sample Essay on Activity Based Costing) was uploaded by one our contributors and does not necessarily reflect how our professionals write our papers. If you would like this paper removed from our website, please contact us our Contact Us Page.

A Database of over Million Scholarly Resources. Start your Search Now

Sample Essay on Activity Based Costing

This is an accounting technique where costs are assigned direct to the products. It can also be defined as a managerial system where overhead costs are incorporated into direct costs of services and products. There are several benefits in using this kind of accounting system as outlined below. One of the benefits is that it allows an individual or a company estimates the exact cost of each product or service. This is a very essential step in uncovering inefficient products that reduce the profit of the company (Plowman, 2011). A company will make decisions on whether to maintain or remove the products on its product lists depending on the rate of overhead cost. Another benefit is that through this method an organization will be in a position to assign prices to different goods and services. 

Those products that consume a lot of input resources will be highly priced than those that use little resources. Price is inclusive of the overhead cost that may be attributed to the finished products. Consequently, market and consumers cannot influence the pricing mechanism because it is based on a scientific pricing of the cost incurred in the manufacture of the product (Innes & Mitchell, 2013). This means that consumers will have to access the product at the available prices. The third benefit is that it enables value adding for products. Companies engage in this initiative in order to woo customers into purchasing the goods. Most of the customers focus on the value they attain after consuming the product hence price is not a determining factor when it comes to the purchasing ordeal. Lastly, tracking of costs for activities is possible while using this system. In situation where an activity uses a lot of resources with low returns, the management has to look for ways to avert the ordeal because of the financial implication brought about by the activity (Collins, 2014).

Activity based costing can be applied in a manufacturing or processing business organization that produces several products using the same product line. This involves several activities that are performed concurrently in coming up with a finished products. Therefore, the price of a product is determined by the combination of all the activities carried out. This infers that inefficiency of an activity will affects the overall product quality. These are the critical steps that a product has to go through hence an organization stresses a lot of care in carrying out each and every activity. This facilitates the process of maintaining product quality (Anderson & Young, 2012).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Anderson, S. W., & Young, S. M. (2012). Implementing management innovations: Lessons learned from activity based costing in the U.S. automobile industry. Boston: Kluwer Academic Publishers.

Collins, F. (2014). Implementing activity based costing. New York, NY: Executive Enterprises Publications.

Innes, J., & Mitchell, F. (2013). A survey of activity-based costing in the U.K.’s largest companies. Management Accounting Research, 22(1), 74-91. doi:10.1006/mare.1995.1008

Plowman, B. (2011). Activity based management: Improving processes and profitability. Aldershot, Hants: Gower.

 

Sharing is: CARING

Are you looking for homework writing help? Click on Order Now button below to Submit your assignment details.

Homework Writing Help
We Can Help you with this Assignment right now!
Sample Essay on Activity Based Costing

Are you looking for homework writing help on (Sample Essay on Activity Based Costing)?Well, you can either use the sample paper provided to write your paper or you could contact us today for an original paper. If you are looking for an assignment to submit, then click on ORDER NOW button or contact us today. Our Professional Writers will be glad to write your paper from scratch.

We ensure that assignment instructions are followed, the paper is written from scratch. If you are not satisfied by our service, you can either request for refund or unlimited revisions for your order at absolutely no extra pay. Once the writer has completed your paper, the editors check your paper for any grammar/formatting/plagiarism mistakes, then the final paper is sent to your email.

Privacy| Confidentiality

Sample Essay on Activity Based Costing

We do not share your personal information with any company or person. We have also ensured that the ordering process is secure; you can check the security feature in the browser. For confidentiality purposes, all papers are sent to your personal email. If you have any questions, contact us any time via email, live chat or our phone number.

Our Clients Testimonials

  • I appreciate help on the assignment. It was hard for me but am good to go now

    Impact of pollution on Environment
  • Am happy now having completed the very difficult assignment

    Creative Message Strategies
  • Your writer did a fine job on the revisions. The paper is now ok

    Ethics: Theory and Practice
  • The paper was so involving but am happy it is done. Will reach you with more assignments

    Title: Privatization in or of America
  • I expected perfection in terms of grammar and I am happy. Lecturer is always on our head but was pleased with my paper. Once again, thanks a lot

    Title: Bundaberg Inquiry
  • The paper looks perfect now, thank to the writer

    Health Care Systems
  • You helped me complete several other tasks as you handled paper. wonna thank you

    Critique Paper on Political Change

Related Articles

Sample Essay on Activity Based Costing

Advanced Health Assessment of Patients and Populations

Affordable Care Act-Value Based Purchasing Advanced Health Assessment of Patients and Populations
Read More

Advanced Health Assessment of Patients and Populations

Affordable Care Act-Value Based Purchasing Advanced Health Assessment of Patients and Populations
Read More

Get more from us…

Would you like this sample paper to be sent to your email or would you like to receive weekly articles on how to write your assignments? You can simply send us your request on how to write your paper and we will email you a free guide within 24-36 hours. Kindly subscribe below!

Email Address: support@globalcompose.com