What is a good response to this post? Activity based costing allows for indirect and overhead costs to be assign to related products and services. This has allowed manufacturing companies to better classify the costs incurred by the during a company's production process. Chrysler switched to ABC system in 1991. At the time they had faced resistance to the new cost system from within the company because it involved having people change the way they ran the business. Their solution to making the new system work was to increase focus on organizational learning and team building. They created seminars, developed support networks through active management involvement, and communicating the ABC's benefits when put into use.
What is a good response to this post?
Activity based costing allows for indirect and overhead costs to be assign to related products and services. This has allowed manufacturing companies to better classify the costs incurred by the during a company's production process. Chrysler switched to ABC system in 1991. At the time they had faced resistance to the new cost system from within the company because it involved having people change the way they ran the business. Their solution to making the new system work was to increase focus on organizational learning and team building. They created seminars, developed support networks through active management involvement, and communicating the ABC's benefits when put into use.
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