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Activity based costing:
Would you really buy a product if you feel the price of such a product is much more than the service it offers? In short would any customer really be interested in paying more than the legitimate pricing? The answer is no. This is quite obvious. Accounting is a subject that not only teaches student to deal with the financial aspect of a business, but it also helps them to determine the importance of the services and products assists them in fixing a price that would be appropriate for them.
Difficulties and importance:
The concept, activity based costing is a process or a method of determining each performance in an organization. It also assigns cost to each of such activities by adding the resources to all such services and products. If you think the concept is quite interesting, so evaluating the products and services and fixing the price would be easy then you are totally wrong. A single mistake can bring disaster to the organization. Well, that really does not mean the task is impossible. With repeated practice and right activity based costing homework help this is absolutely possible.
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