Consequences of ABC Analysis

Activity Based Costing
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Consequences of ABC Analysis
Sharon
If Activity-based Costing has been correctly implemented, and it turns out a product is causing losses, does this mean automatically that the product should be discontinued? (...) Read more? Sign up for free

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  activity based costing
vijay
  The product should not be discontinued.
To produce that particular product (in spite of loss) could be a strategic decision. For example, you get order for say 5 products which includes the 'loss making' product. The order says you supply all or nothing. Now, if the order, taking in to account all 5 products, is profitable then it makes sense to produce and supply the 'loss making' product.
Same logic can be extended to a profitable customer also. In order to retain him and earn profit on sales to him at the end of the year, you might have to sell the 'loss making' product along with other profitable products.

  Loss-making products
Jake
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  Loss-making products
Simon
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  Analysis
Kostadin Nedyalkov Krastev
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Activity Based Costing
Summary
Forum
🔥What is Process Costing?
What is Job Order Costing?
How to Derive Overhead Cost from a P&L?
Best Practices
🥇Limitations and Advantages of ABC for Budgeting
🥈Limitations ABC monitoring operations
🥉ABC in an Advertising Firm?
The Cost of Non-value-added Activities
ABC: reduce non value adding activities?
Consequences of ABC Analysis
Capacity Minutes and Industry Norms
Drivers still Right?
ABC Helps Companies Survive Recession
Traditional Costing versus Activity Based Costing
Conditional Resources in ABC
The Process of Activity Based Costing (ABC) simplified
Activity Based Costing (ABC)
Overhead Costing - Food Manufacturing
ABC in service companies such as airlines?
Degree of Detail in ABC
Activity Based Costing Implementation
ABC and Decision making
Time-driven ABC (TDABC)
Activity Based Management (ABM)
Calculating the Most Profitable Way of Manufacturing a Product
ABC or TOC? The Differences between Activity Based Costing and the Theory of Constraints
Recommended ABC Software
Comparison Activity Based Costing, Time-Driven-ABC and Lean Accounting
ABC Costing in Make to Order of Repetive Manufacturing
Over Recovery / Under Recovery Level
ABC in the Federal Environment
An ABC Initiative is Only as Effective as the Software That Supports It
Organizational Issues when Introducing ABC


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