Response to the following problem:
You Decide: Does activity-based costing (ABC) help a company revamp and improve its business operations, or is it too much of an administrative burden that takes away from the company's primary goals?
Over the last 20 years, there have been many new developments in the area of activity-based costing (ABC). Companies strive to increase profitability by improving their products and processes. However, you are still a bit skeptical. At your current place of employment, your boss has heard about ABC and tries to meet at least every six weeks to talk about what is being done in implementing ABC and what could be improved. You don't see any benefits from the meetings. Nothing that is brought up in the meetings is ever implemented. It just seems to be an opportunity to meet with your friends and have a free lunch. Are you wasting your time?