Question

1. An important principle of change management is:

   		Make sure that DEV, QA, and PRD are set up technically correct
   		Have a data collection, standardization, and harmonization plan in place
   		Involve only top management
   		Educate users during planning for ERP on the system's benefits

1. All of the following are benefits of activity-based costing except:

   		Objectively assign overhead costs based on the cause and effect of a relevant cost driver to activities
   		Help businesses better analyze the cost of making and delivering items
   		Show the profitability by segment of the company
   		Allow for more accurate product overhead costing

Answer 1

1. Change management has 10 fundamental principles. Out of the 10 principles, a fundamental is clearly illustrated that involvement of representatives from all layers is quite important. The inhibitions of the different stakeholders must be addressed so as to align them with the objective of the change process. Educating users during planning for ERP on the system’s benefits will help them in accepting the change. This will enhance the overall effectiveness of the ERP process.

Answer: Educate users during planning for ERP on the system's benefits

2. Activity based costing is the type of costing process in which the necessary costs associated with product development get identified. The overhead costs get assigned to product activities more specifically, thereby enhancing the overall accuracy of product costing process. ABC helps in assessing the activities leading to overhead cost, thereby exerting more control on the activities which lead to increase in overhead cost. Activity-based costing is, however, not used to show profitability by segmentation of company.

Answer: Show the profitability by segment of the company