Thursday 14 February 2013

Activity Base Costing

Activity Base Costing
Jessie Jones
Accounting 599
Professor Carr
July 17, 2011

Evaluate the advice that heave Davis gave to Leonard Bryner and explain whether you agree or disagree with the advice.

Leonard gave Chuck cultivation without investigating or taking a look at the problem with their firm. Leonard was attempting to see why they were losing market share to the conjunctions competitors because they were losing bidding wars. Chuck felt the current policies to coercive toll were adequate and chose not to evaluate the company exploitation Activity Based Costing (ABC).
ABC is a rule of evaluating the cost of providing products and services by activity. Under this method cost is evaluated by dividing a firm into operational sectors and conducting interviews or upshot survey to gather information needed to see how very much it cost to provide a product or service. once the information is gathered and evaluated it provides a substantiated accurate cost for producing a product.
I do not agree with Chuck, and I feel that he should have inquired close the current job be method. A comparison of the two methods would provide a line of achievement of action for examining the firm loss of market share problem.

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I think the ABC method would have painted a clearer picture of companys position within its industry.

treat whether or not there was anything scathe or unethical in the behavior that Chuck Davis displayed.
I dont think there was anything unethical in Chucks action, but I do feel that he was wrong by not taking the time to inquire about the decrease in business. Chuck believe the company was passing through a historical trend as it did 12 years ago when sales were decreased and improved aft(prenominal) a two year period. Chuck should have employ ABC to see if indeed it were an answer to his problem. In my position I think Chuck was being over sure-footed in a system he developed or he was being lazy by not taking investigative actions to solve the firms...If you want to get a full essay, order it on our website: Ordercustompaper.com



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