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IBM implements ABC for its support activities: Information Technology ($5,000,000, 800 projects), Human Resources ($3,000,000, 500 employees), Marketing ($2,500,000, 1,500 campaigns). Requirements: Apply the revenue
- IBM implements ABC for its support activities: Information Technology ($5,000,000, 800 projects), Human Resources ($3,000,000, 500 employees), Marketing ($2,500,000, 1,500 campaigns).
- Requirements:
- Apply the revenue recognition principle to determine when IBM should recognize revenue related to support activities.
- Calculate the activity rate for each support activity considering revenue recognition timelines.
- Allocate costs to different business units based on activity usage and revenue recognition principles.
- Analyze the cost-effectiveness of each support activity with respect to revenue recognition.
- Recommend improvements in resource allocation and revenue recognition practices based on ABC insights.
- Requirements:
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
