Solution-Describe the three guidelines for costing system

Describe the three guidelines for costing system refinement

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Reference no: EM131145865

Activity based costing (ABC) systems look at the underlying activities that drive costs within organizations and use these to assign costs. The use of ABC in organizations presents a unique way to reduce overall costs and better track the costs that arise within the overall process.
Consider these problems related to cost accounting and in a 1-2 page Word document, address the following points. Be sure to proofread your work prior to submitting to the drop box.

• Describe the three guidelines for costing system refinement.
• Explain what an activity based approach to designing a costing system would entail and contain.
• Describe the four levels of cost hierarchy. Why is it important to classify costs into each of the hierarchies?
• Explain the main costs and limits to implementing ABC systems.
• Why might management worry about over costing or under costing products? What would be the impact to the overall organization if this occurs?

Reference no: EM131145865

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Describe the three guidelines for costing system refinement

Reference no: EM131145865

Reference no: EM131145865

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