Activity Based Costing (ABC) Model: A Case Study of Resmed Inc.

MANAGERIAL ACCOUNTING
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Contents
Executive Summary............................................................................................................3
Introduction.......................................................................................................................4
A. ABC Model and its Features........................................................................................5
B. Alignment of ABC Model with current goals and strategies of the company................7
1. Mission and objectives of Resmed Inc..................................................................7
2. Corporate strategies of Resmed Inc......................................................................7
3. Role of ABC model in achieving company’s strategies...........................................8
C. Recommendations regarding the implementation of ABC Model for the Resmed Inc..9
D. Another suitable management accounting tool suitable for Resmed Inc...................10
Conclusion........................................................................................................................12
References.......................................................................................................................13
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Executive Summary
In this project, the evaluation of Activity Based Costing (ABC) model and its features have
been discussed. After evaluation of company’s strategies, the benefits of implementing the
system for Resmed Inc. are mentioned. After implementation of ABC model, the company
would be able to reduce its costs and increase its productivity. Managers will be able to
manage the company efficiently. Another system that is Supply Chain Management (SCM) is
implemented by the company will help it to maintain proper inventory and will be able to
produce and distribute its goods efficiently.
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Introduction
The project aims to explain the Activity Based Costing Model of assigning of indirect costs
and its features and how the ABC model aligns with current goals of the Resmed Inc. This
projects further recommend the company for the adoption of this system and another
management tools that the company can implement to improve its functional efficiency.
The method that has been selected is Supply Chain Management (SCM) which will help the
management of the company to manage its inventory in the most effective manner, which
will reduce costs and increase efficiency. The aim of the project is to evaluate management
models for the Resmed Inc. and recommend those models which will help the company to
improve its operations.
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