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Controlling costs: Activity based costs

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?

Solution Preview

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 ...

Solution Summary

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