Published by:
Harvard Business Publishing
Length: 9 pages
Abstract
Managers in companies selling multiple products are making strategic decisions about pricing and product mix with distorted cost information, detecting the problem only after their competitiveness and profitability have deteriorated. An alternative is activity-based costing. Virtually all of a company''s activities exist to support the production and delivery of today''s goods and services. Companies need not scrap their official cost systems to use activity-based methods. The two can exist simultaneously.
About
Abstract
Managers in companies selling multiple products are making strategic decisions about pricing and product mix with distorted cost information, detecting the problem only after their competitiveness and profitability have deteriorated. An alternative is activity-based costing. Virtually all of a company''s activities exist to support the production and delivery of today''s goods and services. Companies need not scrap their official cost systems to use activity-based methods. The two can exist simultaneously.