It has been suggested that ABC should be used to measure the costs of people-intensive processes but

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It has been suggested’ that ABC should be used to measure the costs of “people-intensive” processes but not

“machine-intensive” processes. People-intensive processes have adaptable resources, employee-paced work flows, and salary-oriented costs. Examples include engineering and customer service, Machine-intensive. processes have machine-paced work flows, depreciation-oriented costs, and employee tasks that depend on technology. Examples include automated painting and robotic assembly. Contrast how ABC and throughput costing treat these types of processes. Make an argument either for or against this proposition.

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Cost Management Strategies For Business Decisions

ISBN: 12

4th Edition

Authors: Ronald Hilton, Michael Maher, Frank Selto

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