Discuss the statement in relations to activity based costing

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Not all revenue is good revenue and not all customers are profitable customers. Discuss the statement in relations to Activity Based Costing.

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A typical budget allocates funds for payroll, general expenses, equipment, services, taxes and miscellaneous expenditures. Careful decisions have to be made regarding the amount of money spent each month on specific items. For instance, a manager may have to postpone purchasing a new piece of equipment that has the potential to help the company produce more in order to make payroll. Payroll is a budgetary expense that cannot be spent arbitrarily or sacrificed

Reference no: EM131486078

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