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1 Some believe ABC provides better accuracy when costing products. Why do you think this is the case?.
2. Activity based costing involves evaluating and assigning cost to every activity that produces a product such as purchasing, storing, machining, and supervising. Additionally, the drivers of costs are also considered. Activities or things that impact costs are cost drivers.
How does a company evaluate and assign cost? How do they determine appropriate cost drivers?
3. What do you think is the biggest adjustment for companies changing from traditional costing to activity based costing?
4.The difference between traditional costing and activity based costing is that traditional costing excludes expenses that are not a result of nonmanufacturing
Do you think these costs should be included? Why or why not?
5. One benefit of traditional costing is the ease of implementation. Can you think of any other benefits?
6. Although we recognize this is an accounting class, I have a general question. What is the difference between a job and a process?
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