Activity-based costing is one of the most accurate methods that can be used to allocate overhead. However, it is not often used in many smaller organizations due to the substantial cost involved with its implementation.
- If you have utilized an activity-based costing system in your former or current employment, describe how this system had been used.
- If you have not encountered this type of system in your work experience, assume a company needs to switch to an ABC system. Describe the common cost drivers that could be used, and how the organization would use them in the implementation of this system. You have the option of using your former or current company for the analysis.
Write your initial response in 3%u20134 paragraphs.