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Change...It'Ll Do You Good

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Change...It'll Do You Good

Change…It’ll Do You Good
A Recommendation for Implementation of
Activity-based Costing

Joann Harper

BU264: Managerial Accounting, Spring 2011
Dr. Henry Bryan
April 13, 2011
Outline

I. Introduction A. Comparison of traditional costing vs. activity-based costing B. Pros and cons of activity-based costing C. 4 companies selected for review i. General Electric ii. Dennison Manufacturing Co. iii. South-western Ohio Steel Inc. iv. Insurance companies D. Thesis Statement: An examination of four companies that have successfully implemented activity-based costing/activity-based management has led to my recommendation that transitioning to activity-based costing is the right move for our company. Although there are many benefits to activity-based costing, we would directly benefit from the relative ease of implementation for a company our size, the ability to view our product costs differently and target process improvements which in turn will lead to an improved line of products and allow us to be more competitive in our market niche. II. General Electric A. A brief history of activity-based costing B. Outcome of General Electric and activity-based costing III. Dennison Manufacturing A. How Dennison Manufacturing uses activity-based costing B. Outcome of Dennison Manufacturing’s implementation of activity-based costing IV. South-western Ohio Steel Inc. A. How South-western Ohio Steel Inc. uses activity-based costing B. Outcome of South-western Ohio Steel Inc.’s implementation of activity-based costing V. Insurance Companies A. How insurance companies use activity-based costing B. Outcome of insurance companies

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