1) Download and read the article, What Type of Businesses Do Activity-Based Costing (ABC) by Danielle Smyth.
2) Create a reflection paper use Word to answer the following questions.
a) According to the author, what is the first step a company takes when starting ABC?
b) According to the author, what is the best way to understand the activities needed to define ABC calculations?
c) The author identifies five advantages of ABC. Which two advantages are most important and why?
d) The author identifies six disadvantages of ABC. Which two disadvantages are most important and why?
e) Why did Ford begin using ABC?
f) For which two product lines does Coco-Cola use ABC to evaluate the cost differences?
g) Describe the type of company that the authors believe will "find little value in activity-based costs"?