Activity Based Costing & Activity Based Management in Chinese Company (Essay Sample)
Activity based costing system.
Traditional costing system VS Activity based costing.
Implementing ABC in selected type of companies.
Benefits of ABC.
Using ABC for improving cost management and profitability
Implementation problems of ABC.
Requirements of successfully implementing ABC system.
APA style is required.
Font: Times New Roman-12
Each paper must focus one type of companies (Service is ok) Chinese company
The paper must have at least 10 references.
Literature review required at least 10 articles.
Activity Based Costing and Activity Based Management in Chinese Companies
Activity based costing system
The activity-based costing (ABC) system is a method of assigning indirect costs, to the products and services, and is mostly used for the including nonmanufacturing overhead costs. The products consume activities while the activities consume resources (Weygandt, Kieso & Kimmel, 2017). When using ABC there is an assumption that the overhead costs are linked to certain activities and they vary depending on the cost drivers of these activities (Mahal& Hossain, 2015). The allocation of overhead costs in ABC to multiple activity cost pool requires assigning the activity cost pools to products and services when the cost drivers are identified. An activity incurs costs when producing a product or service and in the activity cost pool, the overhead costs are attributed specific types of activities.
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