Question: Describe how activity-based cost management can be used to improve operations.
Activity based cost management can be helpful in the following cases;
Question: Please use a specific type of company and give specific examples.
ABC Company has the following businesses across various divisions like spinning division, processing division, garment division, coating division and bag division. Adoption of activity based costing will help the management in understanding the cost drivers that are involved in the various divisions of the ABC Company. Hence it will improve help in continuous improvement in the operations by controlling cost drivers in the spinning division, processing division, garment division, coating division and bag division.
Get Answers For Free
Most questions answered within 1 hours.