Here is the synopsis of our sample research paper on Activity-Based vs Throughput Accounting. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 4 page paper comparing activity-based and volume accounting. The throughput approach can provide a ballpark assessment of the costs of producing a specific product, but ABC can provide accurate cost figures of each of the steps of production. Volume accounting can be misleading in terms of identifying which products or activities are more profitable. ABC provides fuller, more accurate assessment of the true cost of activities, enabling the organization to focus on activities that truly are more profitable. Bibliography lists 5 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KSacctABCthru.rtf
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Unformatted sample text from the term paper:
current business climate of intense competition that only continues to increase, companies find themselves scrambling to keep up with growth as well as keep up with costs. They add
new products and services either to remain competitive or increase revenues, all the while knowing they also must increase profitability as well as revenues.
One of the purposes of accounting is to identify and track costs and profitability. Traditional costing systems were adequate in times past, but those systems are quickly giving
way to activity-based costing (ABC) systems that are more efficient at identifying true costs and profitability of production, whether those products are goods or services. ABC
Horngren, Sundem and Stratton (2002) define the ABC system as one that "accumulates overhead costs for each of the activities of the area being costed, and then
assigns the costs of activities to the products, services, or other cost objects that require that activity" (p. 139). Activity-based costing can identify which activities are the most profitable
for the company, thereby showing it where it needs to place the most emphasis of effort. It may be allocating too great a portion of resources to an activity
that is less profitable than another receiving a smaller share. The ability to refine this cost-and-result approach can increase profitability without the need of increasing revenues.
Cooper and Slagmulder (2000) write that there are "three fundamental ways that firm profitability can be increased" (p. 63): * Secure better prices for required resources;
* Operate more efficiently; and * Sell more profitably. There has been great attention to increasing efficiency over the past decade and longer,
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