Select a manufacturer in your area and explain how it could implement an activity-based costing (ABC) system. When you are deciding on a company to use, consider the costs and benefits in implementing an ABC system. In your post, provide some background information about your company. Explain what it produces and identify the activities that would drive costs. Discuss the cost pools that it would use. Recommend the process it would need to go through to implement ABC in the company.
When responding to two of your peers, identify strengths and/or weaknesses in their implementation plan. Is ABC appropriate for the company they have selected? Have they considered all activities that may drive costs? Are the cost pools listed appropriate? What if any assumptions have been overlooked?
Refer to the Discussion Rubric ATTACHED for directions on completing these discussions.
