Applications of ABC/M in Government Activity-based costing is used widely within the U.S.government. One example is the Department of Agriculture’s Animal and Plant Health InspectionService (APHIS). APHIS helps to protect U.S. agriculture from exotic pests and diseases, to minimize wildlife/agriculture conflicts, and to protect the welfare of animals used for research or soldwholesale for pets. APHIS performs its services for a variety of users, some of whom pay a userfee. ABC was adopted to provide an accurate basis for determining these fees, and also for analysisof the effectiveness and efficiency of its programs in meeting the service’s overall goals. Otherexamples of ABC use are noted in the text, including the U.S. Postal Service and the U.S. Patent andTrademark Office.Required1. Identify an example or two of a governmental entity that you think could benefit from the application ofABC/M, and explain why.2. Identify some of the resources, activities, and cost drivers you would expect to see in this application.
Applications of ABC/M in Government Activity-based costing is used widely within the U.S.
government. One example is the Department of Agriculture’s Animal and Plant Health Inspection
Service (APHIS). APHIS helps to protect U.S. agriculture from exotic pests and diseases, to minimize wildlife/agriculture conflicts, and to protect the welfare of animals used for research or sold
wholesale for pets. APHIS performs its services for a variety of users, some of whom pay a user
fee. ABC was adopted to provide an accurate basis for determining these fees, and also for analysis
of the effectiveness and efficiency of its programs in meeting the service’s overall goals. Other
examples of ABC use are noted in the text, including the U.S. Postal Service and the U.S. Patent and
Trademark Office.
Required
1. Identify an example or two of a governmental entity that you think could benefit from the application of
ABC/M, and explain why.
2. Identify some of the resources, activities, and cost drivers you would expect to see in this application.
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