Activity based costing "blasted" on the cost accounting scene inthe late 1980s and early...

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Accounting

Activity based costing "blasted" on the cost accounting scene inthe late 1980s and early 1990s. It's authors, Dr. Robert Kaplan andDr. Robin Cooper, from Harvard University, presented it as a moreaccurate costing method which would improve the accuracy ofaccounting information, and therefore lead to much improveddecisions, leading to more profitable and successful companies. HasABC lived up to its hype? Has it been a success? A dud? orsomewhere in between? Is the novelty wearing off? Find evidence inthe literature to support your opinion.

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The main objective of any costing system is to determine scientifically the cost of product or service Costs are further divided into the direct cost and indirect cost Indirect cost or Overheads are the costs which are not traceable to the productsservice for which it incurred Charging overheads directly to the products causes distortion of costs This is one of the limitations of the traditional costing system since appropriate charging of overheads is crucial for Price fixing and Decision See Answer

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In: AccountingActivity based costing "blasted" on the cost accounting scene inthe late 1980s and early 1990s....Activity based costing "blasted" on the cost accounting scene inthe late 1980s and early 1990s. It's authors, Dr. Robert Kaplan andDr. Robin Cooper, from Harvard University, presented it as a moreaccurate costing method which would improve the accuracy ofaccounting information, and therefore lead to much improveddecisions, leading to more profitable and successful companies. HasABC lived up to its hype? Has it been a success? A dud? orsomewhere in between? Is the novelty wearing off? Find evidence inthe literature to support your opinion.