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Controlling costs: Activity based costs

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Cost Accounting Problem

You're in charge of a project, but you don't have control of half of the cost, but your boss holds you responsible for the whole project. Can Activity-Based Costing help you in controlling the cost, even if you don't control the whole ball of wax, how would you explain to your Boss, and still keep your job?

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Solution Summary

Your discussion is 246 words and gives a practice example of how activity based costing can help control costs.

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Activity based costing can assist in controlling costs because it creates a charge when someone uses a resource. This tends to cut back on resource consumption. Think about when you rent an apartment and the air conditioning is part of the rent. You keep it nice ...

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Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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