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Essay

Cost Management

Essay specific features

 

Issue:

Business

 

Written by:

Jason W

 

Date added:

February 14, 2015

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 374

 

Was viewed:

4227 times

 

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Essay content:

With 25% of the warehouse space, the bicycle business makes 12% of the total sales for the company. In order to make such a strategic decision the costs have to be accurate and activity-based. One system that aids in this decision is the Activity-based costing system (ABC) (Horngren, Sundem, & Stratton, 2005)...
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This system first accumulates all direct costs into the highly performed activities. Then it allocates those activity-costs groups to believable and dependable cost drivers. Based on financial data this system helps the company make a more strategic decision. I strongly recommend this company invest in this system...
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