The evolution of the fancy of Activity Based be (ABC) has materially changed the cost accounting and management systems. It has enabled the management to yell the cost behavior related to individual units of products, which in shimmer has made it possible for the management to get away with the little profitable products and look into the pricing of the products. This paper covers the technical aspects of the action mechanism based costing with reference to share made by each node in the profits of an presidency. Moreover, the study besides highlights how occupation based management comes in action by and by ABC has identified the information necessary for decision making.
INTRODUCTION
remote other costing methods, ABC is a technical concept which enables the management to make sure the efficient running of the boldnesss operations. The concept of ABC is applied evenly end-to-end the organizations activities and operations. In this paper, the covering of the ABC for the abbreviation of customers contribution in costs and profits of the organization has been focused. The application of the knowledge gained by management through ABC depth psychology is called Activity Based Management (ABM).
MAIN BODY
The Concept
The concept of activity based costing equips the managers with a tool, which helps them in identifying each customers contribution in profits. In the world of business, all(prenominal) organization trusts to give its lift out to the customers who show confidence in it and help in making good profits. But in that respect is a problem. One cannot simply say that who is/are the best customer(s). Neither can anyone say that the one who adds major figures to the revenues of an organization is the best. The solution lies in ABC analysis, which helps managers to rate their customers in footing of their individual contribution to the profits of the organization. Apart from this, the analysis in any case helps managers to identify activities and spread their respective costs over the...If you want to get a full essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment