Information Age :: essays research papers

Discussion Board Activity QuestionActivity Based greet in the Information AgeActivity based costing systems fork over a much more than accurate picture of reaping cost than do traditional reaping costing systems. This recitation stresses on an condition presented on the Web site of the ACA Group, an alliance of highly trained and experience consultants and instructors. The ACA Group provides in-house training, management consulting, and systems installation. You may recognize the names of some of the Groups clients including command Motors, Nissan Motor Company, Hughes Aircraft Company, Dole Packaged Foods, Gillette, Xerox, Gateway, and Anheiser Busch. The title of the article used for this exercise is entitled "Activity based Costing in the Information Age." (http//www.theacagroup.com/activitybasedcosting.htm). It was write by Jim Tarr, president of J.D. Tarr Associates. Mr. Tarr has over 25 years experience in consulting, senior management, and in industrial and manufacturing engineering. You have been asked by your manager to occupy the article and prepare a brief for other managers in the organization. The brief must answer the following questions. 1. What are some of the advantages and disadvantages of traditional product costing systems? There are umteen advantages and disadvantages, in traditional product costing systems. As, listed in Mr. Tarrs article you can see number 1 that the advantages are apparent and clear. The purpose for this system is what is was intended for. And that is standard cost accounting, Companies where knowing to do the following for success.1) homogeneous products, 2) large pick out be compared to indirect be, 3) limited ability to squirrel away data and 4) low " at a lower place the line" costs. (Tarr, James D. N.d.) So, with changing times and the system be build over 70years ago. This has been cause for change because of the disadvantages the system brings to the table referable in part t o the advent of certified financial statements, accounting systems became more structured to comply with the demands of external stakeholders (Tarr, James D. N.d.) So, the primary purpose and focus of cost accounting today is to value inventory for financial statements. The disconfirming trend continues due in part to the floes that the "leveraging effect" of direct labor overhead application as cause as many other applications have given cost accounting negative effect as well. 2. For what type of business case were traditional costing systems designed? Why isnt a traditional costing system appropriate for todays companies? handed-down costing systems were designed for a company with large direct costs in comparison to indirect costs, a limited ability to collect data, homogeneous products and low below the line costs.