Instructional Case—Activity-based Costing Incorporating both Activity and Product Costing
J. Gregory Bushong,
John Talbott and
Accounting Education, 2008, vol. 17, issue 4, 385-403
In recent years, accounting educators have responded to pressure from various stakeholders to improve the skills of accounting graduates. The skills demanded by these constituencies are consistent and include analytical thinking, problem-solving, and communication skills. The purpose of this paper is to describe our approach to addressing these issues in our undergraduate cost/managerial accounting classes by supplementing textbooks with an activity-based costing (ABC) case. The case is unstructured and students are required to prepare both first and second stage allocations, interpret the information, and suggest how management can use the information. An unstructured problem is an ideal setting for activity-based costing because of the difficulties in its implementation. In particular, this case illustrates one of the difficulties encountered in implementing ABC, which occurs when companies collect costs in the general ledger in the traditional functional manner instead of by major production activity.
Keywords: Activity-based cost; instructional case; management accounting (search for similar items in EconPapers)
References: View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:accted:v:17:y:2008:i:4:p:385-403
Ordering information: This journal article can be ordered from
Access Statistics for this article
Accounting Education is currently edited by Richard Wilson
More articles in Accounting Education from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().