Managerial Accounting Assignment
Read the article, Information Usefulness and Usage in Business Decision-Making: An Activity-Based Costing (ABC) Perspective, In a 4 to 6-page written report, address the following questions:
1. Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. Answer the following questions regarding these two systems:
a. Compare and contrast the two costing systems.
b. Which costing system should a service firm, such as an advertising agency use?
c. How do these two systems provide decision-making information?
2. Describe activity based costing.
Give two examples where activity based costing is preferable over traditional costing.
a. How is activity-based costing useful for decision making?
b. Discuss the three overhead rate methods used in activity-based costing and consider their relative usefulness.
Article: Information Usefulness and Usage in Business Decision- Making: An Activity-Based Costing (ABC) Perspective by Nur Naha Abu Mansor, Michael Tayles and Richard Pike.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.