Author

Mandy Ritzke

Publication Date

1-1-1999

Document Type

Dissertation/Thesis

First Advisor

Hendricks, James A.

Degree Name

B.S. (Bachelor of Science)

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.

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

Share

COinS