Advantages and Disadvantages of ABC
Response to the following problem:
Your boss recently attended a conference where activity-based costing was discussed. She is intrigued by the ABC concept and wonders if the company is appropriately costing its products. Your company produces and sells four different styles of briefcases. The production process differs for each briefcase, as different features require different equipment. She returns from the conference and asks you to summarize the advantages and disadvantages of ABC.
Your assignment is to write a two-page memo addressing these issues.