Here is the synopsis of our sample research paper on Activity Based Costing; An Example Using McDonalds. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
Activity based costing is a useful way of identifying and assessing the costs of producing items or services. The process requires the assessment of costs for each stage of production and the determination of relevant cost drivers. This 3 page paper demonstrates this uses the example of burgers produced at McDonalds. Figures used are estimates only. The bibliography cites 1 source.
Page Count:
3 pages (~225 words per page)
File: TS14_TEABCMcD.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
a tin of peaches through to the manufacture of an aircraft. The key to the system is the ability to break down the process into the different stages and allocate
costs for each of the processes is undertaken in order to assess the true cost of manufacturing of the provision of a service breaking this down to a per unit
cost (Kaplan and Cooper, 2008). In order to consider this it is possible to use an example of an organization that may benefit from activity based costing. If we
use the example of McDonalds, where there is the production of a range of burgers there can be the use of ABC in order to assess the different costs of
providing each of the burgers. There are other products produced as well, but the paper will focus on the burgers, which include large quarter pounder burgers as well as the
smaller hamburgers. The process for the restaurant will start with the delivery of the input materials; this would include frozen meat burgers, the buns as well as the condiments
and the packaging which they will be sold in. the first cost will be the direct cost of the input materials themselves. This is a straightforward cost.
The next cost will be the use of costs as a result of the process of receiving them. There is a cost in receiving this
inward, this includes the label of the individual receiving the goods, the time taken putting them away and the overheads associated with the goods inward section of the restaurant. The
materials inward cost can be calculated as a proportion of the total number of units which are received. For example, where there is a small delivery that takes place, or
...