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Managerial Accounting: ABC Systems

Managerial Accounting Questions
1. Should Activity Based Costing (ABC) be implemented in all organizations? Please explain.
2. Accountants want not to assign costs to the wrong jobs. What problem(s) does assigning cost to the wrong job cause?
3. Why is an organization that has a long-run focus more likely to implement ABC than one that has a short-term focus?

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Managerial Accounting Questions

1. Should Activity Based Costing (ABC) be implemented in all organizations? Please explain.

ABC should be implemented in companies where it is feasible to do so. An ABC system comes with certain disadvantages. The company must have the resources in place to implement the ABC system. This can become a financial burden to smaller companies. If the company is able to implement and then continually support the ...

Solution Summary

This solution answers three questions regarding managerial accounting and activity based costing.

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