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Managerial Accounting
Introduction to Managerial Accounting
Jeannie M. Folk
Ray H. Garrison
Eric Noreen

Systems Design: Activity-Based Costing

Internet Exercises

Student Instructions:

ABC Technologies (www.abctech.com), a consulting and software company specializing in activity-based costing (ABC) and activity-based management maintains a library of case studies written by its customers on its web site. Read the case, Blue Cross and Blue Shield of Florida Subsidiaries Insure Profitability Using ABC, (http://www.abctech.com/successes/successes.asp?Mode=DisplayArticle&ArticleID=50)
and answer the following questions:

1. Briefly describe the company's self-funded short term (also known as ASO) disability product.
2. After the company implemented ABC, what did the company discover about its ASO product?
3. After the company implemented ABC, which separate project was completed by the Accounting Department with regards to the ASO product? What was the result of that project?

(Note: Visitors to the company's web site may be asked to register to access the success stories, but we have been informed that the company promises not to sell or give the registration information to any other person or organization.)





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