Activity-based costing system
Not what you're looking for?
Give five disadvantages to using an activity-based costing system:
1. The company may be making single or few products,
2. The company may have low overhead costs as compared to direct labor,
3. The company may only have simple data available,
4. The company may have less non-product costs, and finally
5. The system may be too costly to install and/or execute
Based on these answers, why would a company who only makes a few products not want to use such a system? Is this kind of process more important to a company such as Ford or Boeing, who have several product lines and need to keep track of multiple lines of production?
Purchase this Solution
Solution Summary
The solution answers the question below. The activity-based costing systems are determined.
Solution Preview
Please find my response below.
The objective of activity-based costing is to correctly allocate cost to each product line. After this correct allocation of all the costs, the management can decide which product line is ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Introduction to Finance
This quiz test introductory finance topics.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.