Read an article, summarizes and comments on the article and comment on a student’s post that I provided

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#1
Perform an Internet search using the following term: activity-based costing.
Locate an article (less than five years old) from the results of your search. After reading
the article, provide a posting of less than 150 words that summarizes and comments on
the article. (Your posting should provide the appropriate citation(s). If necessary, you
may wish to refer to the following website, which includes information about citations:
http://www.cod.edu/library/research/citenet.htm.)

• No credit will be available for postings after the assessment due date;

• Ten points will be deducted for submissions that exceed 150 words;

• Twenty points will be deducted for postings without citations; and

• Ten points will be deducted for submissions that reflect an article identical to that
of another student.

#2 Provide a meaningful response of less than 75 words to the posting below. Postings such as “good point” and “I agree” are not considered meaningful.

Point Deductions

• No credit will be available for postings after the assessment due date;

• Ten points will be deducted for submissions that exceed 75 words;

• Ten points will be deducted for submissions that reflect an article identical to that of another student.

Student’s post (comment on this too): Alex O’Brien

Activity Based Costing (Obrien)

Author Marty Schmidt explains why he believes activity-based costing is worth the time and effort. He starts by pointing out that gross margin can even be misleading towards the product margin detail below. As an example, a higher gross margin may lead management to believe all products are doing well when in reality, several product lines may be killing it while others take losses. He makes it clear that ABC can provide tremendous value in being able to make more sophisticated and strategic decisions on how to run the business but also points out that it can be costly and difficult to apply. Ultimately, Marty concludes the best way to figure out whether ABC is right for any company is to try it. He also makes a very key point that companies can try out ABC on just a few products as a “trial run.”

Sources:

Schmidt, Marty. “Is Activity-Based costing Worth the Time and Effort.” Solution Matrix Business Case Blog,

22 July 2018, https://www.business-case-analysis.com/blog/activity-based-costing-worth-time-effort/.