Write it follow the description, then reply another two example.
Perform an Internet search using the term, activity-based costing, and locate an article (less than 2 years old) from the results of your search. After reading the article, write a 3-5 paragraph summary (Your paper should provide the appropriate citation(s).) Everyone has to have a different article.
Example 1,
Introduction:
As economic development companies facing more challenges, and managers are looking for new management systems to adapt companies' demand. The Activity-based costing system was introduced to reduce distortions of indirect costs that were caused by traditional systems. That means to better control and plan companies' cost efficiently, companies aim a new way, which can provide reduction in production costs. This article focuses to structure a bibliography portfolio to check the performance of the ABC system used in service.
Methodology Description:
Three-stage procedures are needed to build a bibliographic portfolio for this paper: planning, Implementation and Synthesis. The first stage needs definition of research objectives and the identification of source of data. During the second stage, Implementation, consists two parts: ProKnow-C and identify initial criteria. According to the article "The ProKnow-C is proposed to build knowledge based on researcher's boundaries and interests. The steps to construct a Bibliographic Portfolio selection divide this phase into two steps: "Selection of gross articles stock" and "Filtering the stock items". Analysis and references are needed in the Synthesis process. It becomes limited only to journals since it has valid knowledge and greater impact.
Activity-Based Costing
"Client becomes object of costs analysis in ABC approach". The activity results combination of financial materials, technological, and human resources to produce products. In ABC system, cost driver means costs assigned to activities. It seeks to establish relationship of cause/effect with the origin of the costs. In activity-cost system, high efficiency is created with more resources.
Conclusion:
The activity-based costing is an information system, which process accurate and reliable process for the product cost. In this article, information about costs helps managers in decision-making. The use of ABC system requires sufficient resources and the detailed study for the organization. Therefore, managers can perform analysis to identify activities and to prevent distortion.
Citation:
Stefano, Nara Medianeira., Freitas, Maria do Carmo Duarte. Framework: Activity-Based Costing in Services, V.7, Number 1, P153-169, March 2014.
example 2
Introductions:
Activity-Based Costing (ABC) is a special costing model that manages business costs or expenses by identifying activities used for the production of products or services. The costs of associated activities are assigned to all products or services in order to ascertain the actual value of the output. This model assigns indirect costs, such as overhead, to products or services so as to better distinguish which products are profitable and which are actually inefficient. Originally emerging in the 1980s, activity-based costing was an output of an increasingly competitive global market, in which technological improvements in production processes required less manual labor and greater oversight of costs associated with production. While it fell out of fashion in the late 1990s and early years of the 21st century, activity-based costing can be a valuable means of accurately assessing corporate costs and expenses.
Methods of Conducting Activity-Based Costing:
There are four principal steps involved in the performance of activity-based costing. First and foremost, businesses must compile a master list of activities. While originally this stage had to be conducted from scratch, innovations in technology and experience have allowed today's companies to use digital methods and past precedent to compile lists. Activities can be identified by first considering a business' products or services, and then compiling lists of all the activities necessary to deliver the outcome.
Benefits of Activity-Based Costing:
This method of cost accounting is widely applicable to numerous business financing, costing, and accounting needs. The ABC modelling process is applicable not only to partial views of company practices, but also to assessing the full scope of business expenditures. ABC is particularly helpful for identifying inefficient products, departments and activities across the whole spectrum of business practices. In addition, ABC can assist in determining the allocation of resources. With this method, more resources may be designated to profitable products and services, while resources may be directed away from those areas that are unprofitable. Through activity-based costing, businesses can increase efficiencies by finding and eliminating extraneous costs and controlling resource distribution at any per-product level, as well as at any departmental level. ABC is an excellent means of identifying places where the business might be hemorrhaging money in support of unprofitable enterprises.
Conclusion:
With activity-based costing, businesses can respond quickly and efficiently to demands for greater regulation. Companies that do not have internal expertise or capacity to conduct this kind of analysis should consider hiring an outside service provider with expertise in activity-based costing