Assignment
In chapter six, the authors showed how the ABC application was used in the construction industry, comparing three types of rebar used for specific construction projects. It was shown that the company had undercosted two of the types of rebar, while the third type of rebar was overcosted. With this example in mind, consider the following issues.
Why is the ABC described in the reading, unacceptable for external financial reports?
In what fundamental ways does ABC differ from traditional costing methods, such as those described in Chapter 4?
Why are top management support and cross-functional involvement crucial when attempting to implement an ABC system?
Write at least 300 words
Post at least two replies to either peers or the instructor
Write at least 150 words per reply
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.
Text Book: Noreen, E., Brewer, P., & Garrison, R. (2016). Managerial Accounting for Managers. (4th ed.). McGraw-Hill/Irwin.