M3A1

Assignment 1: Absorption, Variable, and Activity Based Costing

DUE 8/4, respond to the following in the Discussion Area below:

Continuing the scenario from the Module 2 discussion, think about the costs to manufacture your product. Review the concepts of activity based costing.

• If you implemented activity based costing for your division, what additional costs would you consider as manufacturing costs? How would you allocate those costs to your division?
• Would activity based costing give you a more or less realistic picture of your divisions costs incurred to produce revenue?
• If you chose to not fully implement activity based costing, what would you have learned about your department’s costs that would help you operate more profitably?

Be sure to cite any sources using APA style.