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(Tarr, James D. N.d.) Traditional coasting systems are not appropriate for today?¦s companies because, Today?¦s companies have a wide variety and complexity of products and services, high overhead costs compared to direct labor, an overabundance of data and substantial non product costs that can dramatically affect true product, distribution channel and customer profitability...
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(Tarr, James D. N.d.)
3. What is activity based costing? How does this system differ from traditional costing systems?
Activity based costing is defined in the following qoute: "A method of measuring the cost and performance of activities and cost objects. Assigns cost to activities based on their use of resources and assigns cost to cost objects based on their use of activities...
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