Asked by Diante Pierce on May 22, 2024
Verified
In an ABC system, departmental managers are typically interviewed to determine how the departmental non-personnel costs should be distributed across the activity cost pools.
ABC System
Activity-Based Costing (ABC) System is a method of allocating costs to products and services based on the activities that go into producing them.
Departmental Managers
Individuals responsible for overseeing specific departments within a company, focusing on performance, objectives, and management of departmental employees.
Non-Personnel Costs
includes expenses related to the operation of a business that are not associated with employee compensation, such as materials, utilities, and rent.
- Understand the process of setting up and implementing an ABC system, including first-stage and second-stage allocations.
- Appreciate the importance of manager and departmental involvement in the ABC implementation process.
Verified Answer
Learning Objectives
- Understand the process of setting up and implementing an ABC system, including first-stage and second-stage allocations.
- Appreciate the importance of manager and departmental involvement in the ABC implementation process.
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