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THE AUTHORS DISCUSS THE ACTIONABLE COST OBJECT SELECTION CRITERIA THEY HAVE
EXECUTIVE SUMMARY This article discusses the selection of cost objects that enable an activity-based costing (ABC)
system to provide meaningful information to those developing a coordinated operations and marketing strategy to
enhance company profits. As a result of having supervised many MBA student team projects that used ABC to help
create business plans for small businesses, the authors have developed some guidelines for selecting cost objects that
provide information to suggest profit-enhancing actions by the business. Those guidelines are discussed and examples
are provided from some of the more successful student projects conducted for small businesses.
or several years, we have team-taught an MBA team supplements the traditional accounting system of