Memo: Implementation Benefits of Activity Based Costing

Memo

To:Ms. Karen Jones

From:James Lee (Assistant Procurement Manager)

Date:September, 20th 2011

Subject:Implementation Benefits of Activity Based Costing

Summary

Considering the requirement and importance of activity based costing (ABC) that we can entail as an alternative for reducing the cost structure of company, I would like to highlight few benefits of this activity. I have gone through intensive researches about the product, and I found that ABC method will be beneficial for the company and its growth. The method is rather popular and considered a reliable source of growth medium. This is due to the following reasons:

Better Management;

Accurate cost calculations;

Evaluation and ...