why are value added activities defined from a customer viewpoint 641296
Aug 30, 2021 | Uncategorized
- What is activity based management (ABM), and what specific management tools are used in ABM?
- What is activity analysis, and how is it used with cost driver analysis to manage costs?
- Why are value added activities defined from a customer viewpoint?
- In a televised football game, what activities are value added? What activities are non value added? Would everyone agree with your choices? Why or why not?
- Do cost drivers exist in a traditional accounting system? Are they designated as such? How, if at all, does the use of cost drivers in a traditional accounting system differ from those in an activity based costing system?
- If five people from the same organization calculated manufacturing cycle efficiency for one specific process, would each compute the same MCE? Why or why not?
- Why do more traditional methods of overhead assignment “overload” standard high volume products with overhead costs. How does ABC improve overhead assignments?
- Once an activity based costing system has been developed and implemented in a company, will that system be appropriate for the long term? Why or why not?
- Are all companies likely to benefit to an equal extent from adopting ABC? Discuss.
- Significant hurdles, including a large time commitment, are often encountered in adopting ABC. What specific activities associated with ABC adoption require large investments of time?