Question

how does Nike use activity based costing?

Answer 1

Activity based costing in nike .

This paper discusses how a time driven activity based costing cost system can be implemented in nike and the benefit that it can yield to business performance . Nike is an American based multinational corporation that engages in designing , developing , manufactures as well as global marketing and sales of accessories , equipment ,apparel footwear and services. It started it's operation in 1964 originally known as blue ribbon sports where it worked in collaboration with the Japanese shoe maker onitsuka tiger .It was until 1971 that the company officially assumes it current brand name Mike inc.,n.d. even though most of the products are used or worn casually or leisurely , the athletic footwear products designed by the company are principle for particular athletic use.

It is essential to note that activity based costing (ABC) is a strategy of costing which a business can used to assign resources costs to object of costs like customer , services and product based on activities under taken for cost objects This costing approach is premised on the idea that the services or products of the firm result from its activities ,which require resources that have cost .