ABC SYSTEM
Companies are adopting activity based costing (ABC), and thus provides an opportunity to study the technical and organizational impact of management accounting system changes. Behavioral factors are critical to successful implementation of new cost management systems, and there has been little research on the implementation process.
ABC assist in determining the true cost for a cost product, job, service, or customer
The process helps to distinguish moneymakers from money losers, compare different options, and find an economic break-even point.
ABC is a more accurate cost management methodology. It makes indirect expenses direct.
ABC systems promote decisions that are consistent with lean production, such as: reducing inventories; increasing common components; increasing quality by minimizing total quality costs; minimizing cost of ownership through supplier management, etc
ABC assist in determining the true cost for a cost product, job, service, or customer
The process helps to distinguish moneymakers from money losers, compare different options, and find an economic break-even point.
ABC is a more accurate cost management methodology. It makes indirect expenses direct.
ABC systems promote decisions that are consistent with lean production, such as: reducing inventories; increasing common components; increasing quality by minimizing total quality costs; minimizing cost of ownership through supplier management, etc
