Discussing Activity-Based Costing
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What are the benefits of activity-based costing? Please provide references.
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A discussion of activity-based costing is provided. The benefits were determined.
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Activity-Based Costing (ABC) is an accounting technique that allows an organization to determine the actual cost associated with each product and service produced by the organization without regards to the organizational structure. Activity-based costing can be used to identify discrete activities as well as identifying the primary output measure for each activity. With activity-based costing there are value added-activities and non-value added-activities. Value added-activities are activities which customers are willing to pay for or show that after the process there will be ...
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