10 Nov Read the article, Information Usefulness and Usage
Read the article, Information Usefulness and Usage in Business Decision-Making: An Activity-Based Costing (ABC) Perspective(the article can be located via the LIRN in GAP). In a 4 to 6-page written report, address the following questions:1. Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. Answer the following questions regarding these two systems:a. Compare and contrast the two costing systems.b. Which costing system should a service firm, such as an advertising agency use?c. How do these two systems provide decision-making information?2. Describe activity based costing.Give two examples where activity based costing is preferable over traditional costing.a. How is activity-based costing useful for decision making?b. Discuss the three overhead rate methods used in activity-based costing and consider their relative usefulness.
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