- Define activity-based costing (ABC) systems. What benefits does implementing an ABC system bring to the company? Explain at least two benefits.
- What are the disadvantages to implementing an ABC system? List and explain at least two.
- Read the following article: “Rethinking Activity-Based Costing” and answer these questions:
- Do you agree or disagree with the analysis of the ABC drawbacks expressed in the article? Fully explain your position in your own words.
- Would the proposed changes make ABC a universally applicable costing method in your opinion? Why or why not? Elaborate your response.