Purpose:

Assignment Task: You are required to conduct a literature search and critically review a activity based costing system in this assignment.

Part A

Answer the questions that follow:

Activity-based Costing (ABC)

Questions:

1. Briefly discuss the features of activity based costing system. (3 marks)

2. Identify 2 specific Australian companies that activity based costing system is suitable for, and explain why. (3 marks)

3. Discuss two potential uses of the cost information for decision-making, to the managers in each of the 2 organisations selected in Q2 above. (3 marks)

Part B

Choose one peer reviewed journal article (from any country) on the: Use of activity based costing system in a real-life organisation (i.e. a case-based empirical study). The article should be published between 2005 - 2020. Choose the best article that will answer the questions below.

Questions:

1. Based on activity based costing article, briefly summarise how the costing system was designed and implemented in your real-life organisation. (3 marks)

2. Based on activity based costing article, did the costing system in the study satisfy the features discussed in Part A (Q1)? Why or why not? Include examples in your answer from your costing article. (5 marks)

3. Based on activity based costing article, how useful was the cost information to the internal users in the organisation? Discuss with examples from activity based costing system article. (5 marks)

4. Based on your literature findings, state two key lessons that would inform contemporary organisations about the practical use of activity based costing system. (5 marks)

g. List of References.