Introduction to Activity-Based Costing Harvard Case Solution & Analysis

Presents the basic concepts of activity-based costing (ABC). ABC motivates a simple example, one and diversified plant pen. Proceeds to show how ABC assigns costs more accurately to products and customers: 1) identification of activities that are performed organizational resources, 2) assigning resource costs for activities, and 3) identification of all products, services and customer organizations, and 4) the appointment of the cost of activities in these outputs through activities cost drivers. Also covers the activities of attributes, such as the cost of the hierarchy, without the cost and value, and business processes, as well as the different types of activity cost drivers: transaction, duration and intensity. Closes with a warning to balance the benefits of more accurate estimate of the cost to the cost of the development of associated activities on the basis of the cost of the system. "Hide
by Robert S. Kaplan 14 pages. Publication Date: February 19, 1997. Prod. #: 197076-PDF-ENG

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