ABC--- The proponents of activity based costing claim that this approach to costing provides more accurate product costings. On what do they base these claims
Date Submitted: 09/09/2006 23:47:57
Category: / Business & Economy / Accounting
Length: 3 pages (838 words)
Category: / Business & Economy / Accounting
Length: 3 pages (838 words)
Faces to the competitive business environment, many manufacturing and service organizations operate have already significantly changed in the past 30 years. These new changes have rendered traditional cost accounting methods lack of managers' demands for correct, detailed, correlative information for decision making such as strategic thinking, production promotion plan and cost control etc.. Also the new modern methods have effectively reduced the correlative importance of direct labor cost as production costing. As a result, management accounting …
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…of Management-oriented Accounting, 1983, p. 7.
(2) Altamonte Springs, Standards for the Professional Practice of Internal Accounting, 1978
(3) Deborah W. Tanju, "ABCs for Internal Auditors", 1991
(4) Robert S. Kaplan, "The Four Stage Model of Cost Systems Design," Management Accounting, February 1990, pp. 22-26.
(5) Otis Port, Zachary Schiller, and Resa W. King, "A Smarter Way to Manufacture," Business Week, April 30, 1990, p. 111.
(6) Patrick L. Romano, "Activity Accounting," Management Accounting, May 1988, p. 73
(7) Wiersema William H, "Cost control" PRIMEDIA Business Magazines Oct 1, 1996
(8) IIA's Standards, Section 340.02.
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