Applicability of Activity Based Costing System to Aristocrat Leisure Limited

HI5017 Managerial Accounting
Holmes Institute
Trimester 1 2018
Individual Assignment
Student Name
Date

Executive Summary
This report was prepared at the request of the CEO of Aristocrat Leisure limited. It aims at
evaluating the ABC model and its applicability to the Aristocrat limited. Being a firm that
heavily depends in innovation and technological environment as a tool to gain competitive
advantage, Aristocrat incur huge overhead costs that cannot accommodate the use if
traditional costing system. Its therefore recommended that the firm put in place ABC costing
system. This will also assist the firm monitor and control activities consuming costs in the
firm.

Table of Contents
Table of Contents..................................................................................................................... 3
Introduction............................................................................................................................. 4
Definition and features of ABC.................................................................................................4
Suitability of ABC to the goals and strategies of Aristocrat Leisure Limited.............................5
Mission and objectives of Aristocrat Leisure Limited...........................................................5
Aristocrat Leisure Limited Corporate strategies...................................................................6
Suitability of the ABC costing system to the missions, objectives and strategies of
Aristocrat Leisure Limited.....................................................................................................6
Recommendations................................................................................................................... 7
Additional management accounting tool suitable for Aristocrat Leisure limited.....................7
Conclusion................................................................................................................................ 8
References................................................................................................................................9