PAPER 34

What benefits and drawbacks are there for a business that uses a Standard/Traditional Costing model? What benefits and drawback are there for a business that uses an Activity Based Costing (ABC) model? If you owned a small manufacturing business with relatively high volume and multiple product lines, would you implement an ABC model?  Why? As you get ready to reflect on these questions, don't forget that the best answers are attempts to apply the concept to a small business and explore how a standard/traditional costing or activity-based costing system would/could be used.  What are the benefits and the risks - or how could you adapt it to get the best of both? Don't forget that, when you draw a blank on a question (or any part of it), take a quick look at the concept on the internet or in the Post Online Library.  There will be some great inspiration there that will help you out AND lend some different perspective on the matter!  (Don't forget to cite anything that you use!)

Refer to the given notes in images. Part 1: Understanding Activity-Based Costing Discuss why ABC is important for organizations in today's business environment. Highlight the limitations of traditional costing methods. Please answer both parts with full details explanation and don't copy from other websites no plagiarism. Expect help. ^^$#+×=>>

What benefits and drawbacks are there for a business that uses a Standard/Traditional Costing model? What benefits and drawback are there for a business that uses an Activity Based Costing (ABC) model? If you owned a small manufacturing business with relatively high volume and multiple product lines, would it be good for you to implement an ABC model?  Why? What are the benefits and the risks - or how could you adapt it to get the best of both?

Explain how activity-based costing differs from traditional costing systems. Imagine that your local favorite restaurant decided to use an activity-based costing system. Create a brief outline by identifying 1-2 example activities at each of the following levels:  a. Customer level  b. Group level  c. Service level   d. Facility level.

What is the best reponse to this post? ob costing is a way for businesses to manage the costs and profitability of a specific job or project. This type of cost accounting is most beneficial to companies that make custom/unique products. An industry that may choose job costing is a construction company. They may specialize in a particular service, such as installing water pipes underground, but each project will vary in size, length, location, etc. They would use this method because each project would vary widely, so you could not spread the costs evenly for each one. Process costing is a way of evenly spreading costs for their products because all products are either mass-produced or very similar. An example of a company that would use process costing is a paper company. They produce one product in large quantities to allocate the costs evenly for each batch produced. The main difference between the two is how the overhead is assigned to the product, where job costing is more for…

Why would a business that uses traditional costing systems consider implementing activity-based costing? Discuss the following in your answer: Problems with traditional costing systems in a modern manufacturing environment. Whether the benefits of activity-based costing always outweigh the costs.

The computer workstation furniture manufacturing that Santana Rey started for Business Solutions is progressing well. Santana uses a job order costing system to account for the production costs of this product line. Santana is wondering whether process costing might be a better method for her to keep track of and monitor her production costs. Required 1. What are the features that distinguish job order costing from process costing? 2. Should Santana continue to use job order costing or switch to process costing for her workstation furniture manufacturing? Explain.

What are the Costs per unit of Alfa and Beta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional and ABC costing systems? Compare the costs and prices calculated in the two systems. Please write down the calculation process!thanks!!!

Companies that produce a variety of products need a costing system that allocates costs based on the varying resource demands of each product. Activity-based costing systems identify activities as the cost objects. An activity-based system (ABC) identifies activities as fundamental cost objects. Costs are then assigned to the activities and allocated to the individual products. Unlike simple systems, ABC systems calculate costs of individual activities to cost products. What is activity-based management and how can it be used to improve the profitability of a company. In this discussion, be sure to compare and contrast your understanding of activity-based costing.   Identify a simple product and explain the different cost drivers used in making that product.

You have been asked to install a costing system in a manufacturing company. What practical difficulties will you expect and how will you propose to overcome the same? In view of the difficulties and suggestion to overcome them what main considerations will you keep in mind to introduce the system?

Consumer Focus is a marketing research firm that organizes focus groups for consumer￾product companies. A Consumer Focus Staff member attends each session to ensure that all the logistical aspects run smoothly”In light to the above statement, classify each of the following cost items as:a. Direct or Indirect (D or I) costs with respect to each individual focus group.b. Variable or Fixed (V or F) costs with respect to how the total costs of Consumer Focus change as the number of focus groups conducted changes. (If in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the number of groups conducted.)You will have two answers (D or I; V or F) for each of the following items followed by a short interpretation note. Use the sample answer table and continue from Cost Item BCost ItemA. Payment to individual in each focus group to provide comments on new products.B. Annual subscription of Consumer Focus to Consumer Reports magazine.C.…

Susan Mills, Company B's chief accountant, has developed an automated costing system that helps track the cost of production activities. This system is capable of accurately measuring and allocating post-manufacturing activities, such as selling, promotional, and distribution activities, in such a way that Company B gets a more detailed view of its product costs. One of the benefits of this system is that it allows Company B to determine which product lines are more profitable   When Susan implemented the new costing system, she realized that the company's current period profits would increase significantly if the new product cost information was used for inventory valuation on the financial statements. Susan has been under intense pressure to improve the company's profits, and this would be a quick and effective way for her to help meet the company's short-term profit goals. As a result, Susan has decided to use the automated costing system to determine the company's profits. 1. Why…

A variety of organizations, products, and services are described in the following table: product of services type of cost system Bayer Aspirin   Dentis practices   coca cola   conversion vans   Delta Airlines   exxon oil   auto repair   mayfield dairy   home builder   sony TV   Required:In the second column of the above table, enter "Process", Job Order”, or “Hybrid” as the expected most appropriate costing system.

Compute the activity rate for each of the activity cost pools.

How is activity-based costing different from traditional costing systems? If a restaurant decided to use an activity-based costing system, please share 1-2 examples at each of the following levels: Customer, Group, Service and Facility.

How does activity-based costing differ from traditional costing systems? Can you please create a brief outline by identifying 1 or 2 examples of a restaurant using an ABC system at a customer level, group level, service level, and facility level?  PLEASE BE ORIGINAL IN YOUR ANSWER.