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Activity-Based Costing and Customer Profitability Analysis


After studying this chapter, you should be able to . . .

  1. Explain the strategic role of activity-based costing
  2. Describe activity-based costing (ABC), the steps in developing an ABC system, and the benefits of an ABC system
  3. Determine product costs under both the volume-based method and the activity-based method and contrast the two
  4. Explain activity-based management (ABM)
  5. Describe how ABC/M is used in manufacturing companies, service companies, and governmental organizations
  6. Use an activity-based approach to analyze customer profitability
  7. Identify key factors for successful ABC/M implementation








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