creating a thesis and an outline on Activity-Based Costing and Its Application in Industry. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required.
I need help creating a thesis and an outline on Activity-Based Costing and Its Application in Industry. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. An activity-based costing, data about the costs of all activities related to the processes of planning, designing, manufacturing, and distributing is gathered and analyzed. After a complete analysis of the data, activities are associated with all products and services of a company to know which products contribute to the increase in profits of the company and which products or services result in loss for the company.
One of the major steps that the top management must take while planning to implement an activity-based costing system in a company is to set up a team of skilled professionals related to the field of accounting. The basic purpose of the team should be to identify those activities which turn out to be expensive for the business processes instead of increasing the profits of the company. The team of professionals should be skilled enough to identify the details of the hidden costs related to the business activities. Some costs are not entirely obvious and need to be identified through proper examination of the business processes. The team should outsource or cut back all unnecessary activities to make the business processes cost-effective.
Activity-based costing makes use of computers for the proper identification and analysis of the gathered data. Computers gather the data, which helps the managers assign costs to different activities based on their use. Computers first gather data and details of hidden costs from different sources and then assist the managers in making the most suitable and appropriate decisions regarding the activities related to different business processes. Companies can get rid of those activities related to the services that tend to be expensive instead of being cost-effective.
The top management needs to have a complete understanding of the ongoing financial issues of the company to implement an activity-based costing system. The top management of a company sometimes needs to perform a test.
