An article inCost Management, by Kocakulah, Bartlett, and Albin entitled ?ABC for Calculating Mortgage Loan Servicing Expenses? (July/August 2009, p. 36), discusses a use of ABC in the financial services industry.

Instructions

Read the article and answer the following questions.

(a)

What are some of the benefits of ABC that relate to the financial services industry?

(b)

What are three things that the company's original costing method did not take into account?

(c)

What were some of the cost drivers used by the company in the ABC approach?

ABC FOR CALCULATING MORTGAGE LOAN SERVICING EXPENSES Kocaklh, Mehmet C;Bartlett, James;Albin, Marvin Cost Management; Jul/Aug 2009; 23, 4; ProQuest Central pg. 36 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission