Information Age :: essays research papers

Discussion Board Activity QuestionActivity base Costing in the randomness AgeActivity based be remainss provide a much more accurate picture of harvesting costs than do traditional product cost systems. This exercise focuses on an article presented on the Web site of the ACA Group, an alliance of highly trained and make outd consultants and instructors. The ACA Group provides in-house training, management consulting, and systems installation. You may recognize the names of somewhat of the Groups clients including General Motors, Nissan Motor Company, Hughes Aircraft Company, Dole Packaged Foods, Gillette, Xerox, Gateway, and Anheiser Busch. The title of the article utilize for this exercise is entitled "Activity based Costing in the Information Age." (http//www.theacagroup.com/activitybasedcosting.htm). It was written by Jim Tarr, president of J.D. Tarr Associates. Mr. Tarr has over 25 years experience in consulting, senior management, and in industrial and manufact uring engineering. You have been asked by your music studyor to read the article and prepare a brief for other managers in the organization. The brief must answer the fol griming questions. 1. What are some of the advantages and disadvantages of traditional product costing systems? There are many advantages and disadvantages, in traditional product costing systems. As, listed in Mr. Tarrs article you can expose first that the advantages are apparent and clear. The endeavor for this system is what is was intended for. And that is archetype cost report, Companies where designed to do the following for success.1) homogeneous products, 2) large say costs compared to indirect costs, 3) limited force to collect data and 4) low "below the line" costs. (Tarr, James D. N.d.) So, with changing times and the system being build over 70years ago. This has been cause for change because of the disadvantages the system brings to the slacken due in part to the advent of certified p ecuniary statements, accounting systems became more structured to comply with the demands of external stakeholders (Tarr, James D. N.d.) So, the primary purpose and focus of cost accounting today is to value inventory for financial statements. The interdict trend continues due in part to the floes that the "leveraging force out" of direct labor overhead application as cause as many other applications have given cost accounting negative effects as well. 2. For what type of business case were traditional costing systems designed? Why isnt a traditional costing system enamor for todays companies?Traditional costing systems were designed for a company with large direct costs in comparison to indirect costs, a limited ability to collect data, homogeneous products and low below the line costs.