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    Ford Motor Co: How Activity Based Costing can help with Quality

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    In its advertising, Ford Motor Company says "Quality is Job One." Ford is indicating that good quality is the most important consideration for its customers. This would include customer satisfaction on delivery dates and specific areas of car performance, including properly closing doors, and defect rates. Explain how Activity Based Costing can help supply this information to Ford's management.

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    Solution Preview

    Activity based costing track activities so that costs can be assigned to them. Since it tracks activities that are important, it can track important activities such as ...

    Solution Summary

    A brief paragraph gets the student started on how activity based costing can assist Ford in this example.