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Activity Based Costing

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Added on  2021-05-27

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5 The mission and objectives of the TILT Renewables Limited 5 Corporate strategy of the TILT Renewable Limited 6 How Activity based costing can help TILT Renewables Limited to attain its strategies 6 Recommendation about the implementation of Activity Based Costing in the organization 7 The management tool apart from Activity based costing that is more appropriate to TILT Renewables Limited 8 Conclusion 9 References 10 Executive Summary This paper discusses how Activity-based costing can help the accounting information of the management in TILT Renewables Limited

Activity Based Costing

   Added on 2021-05-27

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Activity Based Costing 1ACTIVITY BASED COSTINGBy (Student’s Name)Professor’s NameCollegeCourseDate
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Activity Based Costing 2ACTIVITY BASED COSTINGTable of ContentsExecutive summary.....................................................................................................................................3Introduction.................................................................................................................................................3Description of Activity based costing and its features.................................................................................4Description of how Activity based costing supports the current strategies and goals of the organization.5The mission and objectives of the TILT Renewables Limited...................................................................5Corporate strategy of the TILT Renewable Limited.................................................................................6How Activity based costing can help TILT Renewables Limited to attain its strategies............................6Recommendation about the implementation of Activity Based Costing in the organization......................7The management tool apart from Activity based costing that is more appropriate to TILT Renewables Limited.........................................................................................................................................................8Conclusion...................................................................................................................................................9References.................................................................................................................................................10
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Activity Based Costing 3Executive SummaryThis paper discusses how Activity-based costing can help the accounting information ofthe management in TILT Renewables Limited. The control of The TILT Renewable Limitedshould apply the use of the sophisticated cost information that can make them quick decisions inthe organisation. Given the high rate of competition in the industry and the need to reduce thecosts, the management of TILT Renewable Limited needs to implement ABC system (Anguita etal. 2012). This type of the model will help the administration to allocate various costs of theadministration to the services and products that the organisation provides. The main advantagesthat the ABC system will contribute to the management at TILT Renewable Limited are asfollows: It will enable the administration to identify costs provided by various departments of theorganisation as well as efficient use of services that are more costly. The product managers willalso make use of the information that relates to cost to design products more cost-effectively.Cost information will also improve product pricing in the organisation (Amid, Ghodsypour andO’Brien 2011). Activity-based costing system can also help the management in fixing the pricesof most of their products (setting selling prices). The implementation process of the model to theorganisation requires proper planning before and after the implementation process. Themanagement should also teach all the employees on how the Model will function. The teachingprocess will enable every employee to understand the implementation process of the model.Activity Based Costing can provide solutions to the problems that the organisations are facing(Pinto 2010).
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Activity Based Costing 4IntroductionThe paper discusses how the management can apply the ABC system to improve theperformance of the TILT Renewables Limited. The company is well known in the provisionof the energy generation, and it also tries to be the leading owner, developer as well as themanager of the production of the renewable energy in both New Zealand and Australia.Over the past few years, the TLT has reduced its level of return; this is due to the problemin financial leverage which in turn impact Return on equity which then affects the overallprofits of the Company. The organisation can only improve the performance byimplementing Activity Based Costing system. To help explained how ABC could enhancethe performance of the TILT Renewable Limited; the paper is divided into sections witheach part illustrating the Activity-based costing method. The paper explains Activity-basedcosting system as well as its features; also, it also discusses the benefits that are associatedwith the model in the TILT Renewables Limited. It also describes how activity-basedcosting supports the current strategies and goals of the institution and then provides arecommendation that should be put in place to ensure effective implementation of the ABCsystem (Lin et al. 2017). Lastly, the paper proposes the alternative accounting tool that isappropriate for TILT Renewables Limited. Description of Activity-based costing and its features
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