Question

"Activity-based costing is for accountants and production managers. I plan to be a marketing specialist, so activity-based costing won't help me." Do you agree or disagree with this statement? Explain.

Answer 1

No dear your statment is not correct,

ABC is can helpful for accountants and production manager ,however it can also be useful for marketing specialist in following way,

ABC helps to determined true cost of marketing

It helps to determined which customer product or service is more important so that appropriate decision can be made

It provides right information to marketing managers so that elimination of product or service or customer can be made,

By using ABC one can can have clear understanding of which acrivty should be performed in modified way so that cost of marketing can be minimzed..

Which product requires more marketing for sale and which product requires less marketing such decision can be taken with help of ABC