Sam and Dave own a small manufacturing company that makes all types of hunting gear from decoys to...

Question

Sam and Dave own a small manufacturing company that makes all types of hunting gear from decoys to garments. Sam is concerned that products
 are not being charged the correct amount of overhead and suggests they use ABC for allocating overhead. Dave thinks they are too small to use ABC and that it
 will cost more than it is worth. How do you advise Sam and Dave?

Robert · Accepted Answer

Title 
Activity Based Costing and Management 
Description 
Sam and Dave own a small manufacturing company that makes all types of hunting gear from decoys 
to garments. Sam is concerned that products are not being charged the correct amount of overhead 
and suggests they use ABC for allocating overhead. Dave thinks they are too small to use ABC and 
that it will cost more than it is worth. How do you advise Sam and Dave?

Sam and Dave own a small manufacturing company that makes all types of hunting gear from decoys to garments. Sam is concerned that products are not being charged the correct amount of overhead and...

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