Write a 2-3-page report on the importance of this special topic for cost accounting. Indicate why you choose your special topic for this paper.You can also engage in independent research and reading to enhance the coverage of your special topic. Cite all resources used in the final draft of your report. Include parenthetical references for all direct quotes and for extended use of paraphrased material in your report.

My topic: - Activity based Costing

I chose this topic because I believe its a key process in a companys profitability. A company that uses an ABC system is to more precisely determine how overhead is used and the final report will show the benefits and drawbacks of this process.

Activity-based costing (ABC) is a methodology for more precisely allocating overhead to those items that actually use it. The system can be used for the targeted reduction of overhead costs. ABC works best in complex environments, where there are many machines and products, and tangled processes that are not easy to sort out. Conversely, it is of less use in a streamlined environment where production processes are abbreviated.

Links:

http://www.accountingtools.com/activity-based-costing

http://www.accountingcoach.com/activity-based-costing/explanation

https://www.business-case-analysis.com/activity-based-costing.html

http://www.cimaglobal.com/Documents/ImportedDocuments/ABM_techrpt_0401.pdf

Books:

Activity-Based Costing: Making it Work for Small and Mid-Sized Companies, Second Edition

by Douglas T. Hicks

http://library.books24x7.com.ezproxy.umuc.edu/assetviewer.aspx?&&&&

Pricing for Profitability: Activity-Based Pricing for Competitive Advantage

by John L. Daly

http://library.books24x7.com.ezproxy.umuc.edu/toc.aspx?