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    Activity based costing systems

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    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.

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    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 ...

    Solution Summary

    This solution discusses an activity-based costing system for a business.