If you were a small business owner, would you implement an activity-based costing system? What potential benefits or pitfalls do you foresee? Give an example of an activity based costing system.© BrainMass Inc. brainmass.com March 5, 2021, 1:26 am ad1c9bdddf
For a small business, I would not implement an activity based costing system.
Potential benefits of ABC:
1) Accurate costing of products
2) No over-costing or under-costing of products
3) Correct selling price can be fixed based on the correct costing of the product.
4) Better market position for the product as a result of the ...
This solution discusses an activity-based costing system for a business.