ACC 561 Costing Methods Paper
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ACC 561 Costing Methods Paper
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Creating a business is a very big step for most people and managing it can be an even bigger task. When creating a company, several factors must go into place. Companies must be able to maintain a steady profit and stay above their breakeven point. Companies must also be able to utilize their assets along with the activities including selling, manufacturing, warehousing, and shipping. Some companies choose to do this internal, but others may choose to source them out.
The first strategy used by the company was the activity based costing (ABC) system. The ABC system will allow them to sale a fresh product all the time and assign their money. The company created a product that is very tasty, yet very
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Resource: Accounting
Read BYP17-5, titled Communication Activity, in the Ch. 17 "Broadening Your Perspective" section of Accounting.
Write a paper of no more than 700 words addressing the following questions:
What strategies did the management of Super Bakery, Inc. use?
Why did Super Bakery's management think it was necessary to install an ABC system? Do you agree with their reasoning? If you disagree, identify your recommended costing system, including your rationale, to management.
Would a job order cost system or a process order cost system work for Super Bakery. Why or why not?
Format your paper consistent with APA guidelines.