Managerial accounting The grumbling had gone on for months. Managers kept complaining that their monthly...
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Accounting
Managerial accounting The grumbling had gone on for months. Managers kept complaining that their monthly charges for voice telecommunication services didn't reflect the amount actually consumed. Consequently, there was a movement to reinstate detailed billing to support the monthly charges and the process to implement an activity-based chargeback system was proceeding full steam ahead. Mike Burton, Manager of Accounting Policy at The Boeing Company, wasn't sure the new activity-based system was the answer. He recalled that four years earlier Boeing had abandoned a detailed activity-based chargeback system because too much detail was being provided and the cost associated with providing the detail wasn't justified. Although the consumption of voice telecommunication services had increased dramatically over the past four years, Mike wasn't sure whether the increase was due to the use of the simplified chargeback system or whether it was due to changes in technology.
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