list 2 australian or US based publicly listed manufacturing companies who use Activity based costing and...

list 2 australian or US based publicly listed manufacturing companies who use Activity based costing and activity based management.

Solutions

Expert Solution

2 US based publicly listed manufacturing companies which use Activity Based costing and activity based management are

· Ford Motor Company

· The Coca-Cola Company

Explanation:

Activity Based costing is a method of overhead allocation which allocates overheads based on activities consumed rather than traditional cost drivers like machine hours, direct labor hours or direct labor cost. It is an improved method of cost allocation which helps in accurate product costing and reliable product pricing. It involves study of activities of the firm and pooling them into activity cost pool. A cost driver is selected for each activity to calculate activity driver rate which is allocated to products based on activities consumed

Activity Based Management is the way of analysing and evaluating a company’s activities through Activity based costing approach and value chain analysis approach. It involves study of all activities and sees if each activity is value adding or not. Non-value adding activities are eliminated since it reduces the cost and helps in cost management.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Explain activity-based costing. Choose two (2) manufacturing companies and explain why these companies would benefit from...

Explain activity-based costing. Choose two (2) manufacturing companies and explain why these companies would benefit from using an activity based costing system.

Part-A 1. discuss the features of Activity-based costing system in detail. 2. Identify 2 specific Australian...

Part-A 1. discuss the features of Activity-based costing system in detail. 2. Identify 2 specific Australian organisations that Activity-based costing system is suitable for, and explain why in detail. 3. Discuss the potential uses of the cost information for decision-making, to the managers in each of the 2 organisations selected in 2 above in detail.

Assess this statement: "Activity-based costing is only useful for manufacturing companies". Do you agree or disagree,...

Assess this statement: "Activity-based costing is only useful for manufacturing companies". Do you agree or disagree, why? PLEASE provide example. Please answer in more than 350 words and only in word format. Please dont copy paste from websites of course hero or any.

Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital...

Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $210 per day Radiology $296 per image Pharmacy $45 per physician order Chemistry lab $77 per test Operating room $740 per operating room hour The activity usage information associated with the two patients is as follows:...

Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital...

Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $252 per day Radiology $355 per image Pharmacy $56 per physician order Chemistry lab $100 per test Operating room $680 per operating room hour The activity usage information associated with the two patients is as follows:...

Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing to assign hospital...

Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $260 per day Radiology $210 per image Pharmacy $30 per physician order Chemistry lab $110 per test Operating room $940 per operating room hour The activity usage information associated with the two patients is as follows:...

Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital...

Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $237 per day Radiology $334 per image Pharmacy $53 per physician order Chemistry lab $90 per test Operating room $740 per operating room hour The activity usage information associated with the two patients is as follows:...

Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital...

Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $240 per day Radiology $215 per image Pharmacy $50 per physician order Chemistry lab $80 per test Operating room $1,000 per operating room hour The activity usage information associated with the two patients is as follows:...

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity...

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products: Activity Cost Pools Activity Rate Processing customer orders $95.88 per customer order Assembling products $2.76 per assembly hour Setting up batches $53.30 per batch Last year, Product F76D involved 3 customer orders, 496 assembly hours, and 27 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system? Multiple Choice $1,439.10 $3,095.70...

how does Nike use activity based costing?

Subjects