Activity Based Costing: Benefits and Implementation in CSL Limited

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Activity Based Costing

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Executive Summary
The present report is developed to gain an adequate understanding of the Activity based
costing model and its benefits realized by the business corporations. It has been extracted from
the overall analysis carried put in report that ABC costing is largely efficient in providing an
accurate determination of overhead costs to the business corporations on the basis of level of
output. The examination of the implementation of ABC costing method in CSL Limited has
depicted that the method is highly effective in realizing its corporate strategies and objectives.
The company is recommend to adopt the use of ABC costing method in comparison to
traditional method of costing for accurate identification of cost incurred in each of its clinical
research activities. In addition to ABC costing model, it is recommended to adopt the use of top
down costing model for accurate identification of the operational costs of its different clinical
activities.

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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
A: Activity Based Costing Model and its features..........................................................................4
B: Aligning of the ABC Model with the Current Goals and Strategies..........................................6
C: Recommendations about the implementation of ABC model in CSL Limited.........................9
D: Suggestion of other management accounting tool that is suitable for the chosen company....10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12