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Describe the importance of cost behavior pattern in planning

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Question 1: Define activity based costing. Explain how an activity based costing system can alleviate the problems managers have using a traditional, volume based product costing system. Is one approach better than the other? If so, how would an organization make the decision between the two?

Question 2: Describe the importance of cost behavior patterns in planning, control and decision making. Identify a cost driver for each of the following organizations:

1) hotel;

2) hospital;

3) computer manufacturer;

4) public accounting firm and

5) college or university.

  • How does your selected driver for each impact the organization and why?

Reference no: EM132472715

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