Abc Costing System

The ABC belling system and customer sustaining
Introduction
During the eighties the terminal point of conventional product cost began to be widely publicized. These systems were desgined decades ago when most companies marketed a narrow range of products. Indirect cost were relatively sm whole, and the distortion arising from inappropriate overhead allocation was not significant. Information processing cost were high and it was therefore strong to justify for educate methods of assigning indirect be to the cost objects. And gradually take on ways to know the customer demand, and how to heavyset in the relationship with the loyal and profitable customer.
By the eighties companies were marketing a wide range of products, indirect costs were no longer relatively unimportant and information costs had ceased to be a barrier to introducing more sophisticated systems. From other side keeping the relationship with the customer would be very much less costly than trying to make a in the buff one every time. Furthermore, the intense global competition of the 1980s resulted in decision errors from poor cost information bonnie more and more costly. It is against this background that a new, and more sophisticated cost systems, called activity-based costing (ABC) emerged in the late 1980s.




Here are we going to study and analyze this method, and see if it fits and work for all companies or not, and what we think of it.
Aim of model
The aim of the model is to find out if the new costing method, activity based costing (ABC), is developed and has been advocated as a means of overcoming the systematic distortions of traditional cost accounting and for bringing relevance back to managerial accounting. And it would help the organizations to soundly estimate the cost elements of entire products and services, and to last gain customer sustaining.

Method  
Activity based costing method assigns an organization`s resources costs through activities to the products and services...If you penury to get a full essay, order it on our website: Ordercustompaper.com



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