Management accounting Assignment Example | Topics and Well Written Essays - 1000 words - 2

Management accounting - Assignment ExampleBefore I begin discussing this statement, I would like to make my refuse known. I disagree with this statement and I welcome the opportunity to argue and defend my case this disagreement will form the bedrock of my whole discussion. ground on research and my professional experience, modern developments like activity-based costing (ABC) have brought significant benefits and advantages to businesses and organizations everywhere regardless of the size (small, medium-sized and large). These developments have allowed businesses and organizations to implement more efficacious sy fores that guarantee long-term growth provided the implementation process is do correctly and professionally (Cotton 2001, pg. 29). ABC, for example, is a recent modern development/innovation that has been rapidly select by organizations in many industries. Governments and NGOs have also been quick to adopt and implement ABC and to make it a core component of their man agement policies. This shows that on that point must be something beneficial about these modern developments and ABC in particular, their fanciness is inconsequential to their primary functions. It is important to note that the adoption of such developments/innovations is not done in a wholesale manner because they come with their own disadvantages that must be addressed (Lucas 2006, pg. 39). However, overall, such developments are more beneficial and therefore sincerely warrant adoption and adoption.Let us go back to ABC. This is a technique employed in determining correct costs. It is used to assign resource costs (based on activities that are conducted) to cost objects like customers products, or services. The basis for the ABC approach to costing is that an organizations products or services stem from activities. Activities consume resources which in turn incur costs. In ABC, the costs of resources are normally assigned to activities on the basis of