Publication Date
1-1-1999
Document Type
Dissertation/Thesis
First Advisor
Hendricks, James A.
Degree Name
B.S. (Bachelor of Science)
Legacy Department
Department of Accountancy
Abstract
Product costs are a function of activities. Activity-based costing uses this theory to more accurately cost products. More companies are considering activitybased costing for their products. These companies have a lot of questions that need to be answered before switching their entire costing services. There are four categories of costs that are used in determining the cost of a product. By grouping costs into these categories, companies are able to see what costs are unnecessary and should be eliminated. Activity-based costing provides for better decision-making. A manager faces many decisions about products including the "make or buy decision". When using activity-based costing, the manager handles these decisions with ease. After considering all factors, a traditional cost system is inferior to an activity-based costing system. Products are more accurately costed, decisionmaking is easier, and companies find it better to work with.
Recommended Citation
Ritzke, Mandy, "Managerial Uses of Activity-Based Costing" (1999). Honors Capstones. 760.
https://huskiecommons.lib.niu.edu/studentengagement-honorscapstones/760
Extent
17 pages
Language
eng
Publisher
Northern Illinois University
Rights Statement
In Copyright
Rights Statement 2
NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.
Media Type
Text
