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Benefits of Activity-based Costing Method for Operational Efficiency: A Case Study of NEXTDC Limited

   

Added on  2023-06-11

12 Pages2590 Words314 Views
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Management Accounting
Benefits of Activity-based Costing Method for Operational Efficiency: A Case Study of NEXTDC Limited_1
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Executive Summary
This report has provided an analysis into the benefits of Activity-based costing method to
maximize the operational efficiency of a company. In this context, the report has particularly
evaluated the usefulness of ABC costing method to realize the corporate strategies of an ASX
listed entity, that is, NEXTDC Limited. Also, it provides recommendations for the
implementation of the method to the management accountants and also other management
accounting tools that is suitable to be applied for the company.
Benefits of Activity-based Costing Method for Operational Efficiency: A Case Study of NEXTDC Limited_2
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Benefits of Activity-based Costing Method for Operational Efficiency: A Case Study of NEXTDC Limited_3
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Conten
Introduction.................................................................................................................................................4
a. Activity based costing model and its features.........................................................................................4
Definition and its importance..................................................................................................................4
Features of the Activity based costing model..........................................................................................5
b. Aligning of ABC Model with the Currents Goals and Strategies of Selected Company............................6
i. Identification of Company’s Mission & Objectives................................................................................6
ii. Identification of Company’s Corporate Strategies...............................................................................6
iii. Explanation of ABC Model in assisting to Achieve Company’s Strategies...........................................6
c. Recommendations to the company for ABC Costing System Implementation........................................8
d. Suggestion of other Management accounting tool.................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
Benefits of Activity-based Costing Method for Operational Efficiency: A Case Study of NEXTDC Limited_4

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