ABC Technique: Advantages and Disadvantages

Managerial Accounting Assignment

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By student name
Professor
University
Date: 20th Sep, 2018.
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Executive Summary
This assignment report is basically a discussion on and an analysis of the ABC technique, i.e.
activity bases costing. The use and importance of ABC is not restricted to a particular class of
companies. It is equally beneficial for small and large companies. For the purpose of this
assignment, two journal articles have been studied. With the help of these articles we would get a
real, fair and reliable idea about the merits and demerits of this technique of costing. A thorough
analysis of the chosen journal articles also highlights how cost reduction or cost control can be
achieved so that the firms get a competitive advantage over others. Besides the study on the two
research journals, the similarities and the differences in the 2 studies have also ben highlighted.
Towards the end, the key learnings from the 2 journal articles has also been mentioned which
will be helpful for the management accountants in Australia and over the world in managing the
costs better.
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Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Advantages of ABC costing technique.........................................................................................................4
Disadvantages of ABC costing technique.....................................................................................................5
Discussion on the two journals....................................................................................................................6
Explanation of the Selected Management Accounting Topic......................................................................6
Purpose of the studies and the research questions set out to be explored............................................6
Similarities and differences between the findings of the 2 studies.............................................................8
Specific outcomes and relevant learnings from the research findings..................................................10
References.................................................................................................................................................12
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