Form groups of three to six students. Each student should choose a different article about activity-based costing
Question:
Form groups of three to six students. Each student should choose a different article about activity-based costing (ABC) or activity-based management (ABM) from the current literature. The article should include evidence about at least one company’s application of ABC. Such articles are available in a variety of sources. You might try bibliographic searches for “activity based costing” or “activity-based management.” Journals that will have articles on ABC and ABM include:
- CGA Magazine (Canada)
- CMA Management (Canada)
- Management Accounting Quarterly (USA)
- Journal of Cost Management (USA)
- Management Accounting Research (United Kingdom)
- Strategic Finance (USA)
1. After reading the article, note the following (if given in the article) for one company:
1. The benefits of ABC or ABM
2. The problems encountered in implementing ABC or ABM
3. Suggestions by the author(s) about employing ABC or ABM
2. As a group, using the collective wisdom garnered from the articles, respond to the following:
1. What kinds of companies can benefit from ABC or ABM?
2. What kinds of companies have little to gain from ABC or ABM?
3. What steps should be taken to ensure successful implementation of ABC or ABM?
4. What potential pitfalls are there to avoid in implementing ABC or ABM?
Step by Step Answer:
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu