Memo: Implementation Benefits Of Activity Based Costing

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Memo: Implementation Benefits of Activity Based Costing


To:Ms. Karen Jones

From:James Lee (Assistant Procurement Manager)

Date:September, 20th 2011

Subject:Implementation Benefits of Activity Based Costing


Considering the requirement and importance of activity based costing (ABC) that we can entail as an alternative for reducing the cost structure of company, I would like to highlight few benefits of this activity. I have gone through intensive researches about the product, and I found that ABC method will be beneficial for the company and its growth. The method is rather popular and considered a reliable source of growth medium. This is due to the following reasons:

Better Management;

Accurate cost calculations;

Evaluation and ...
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