Expert Answer:week 3 discussion

  

Solved by verified expert:Activity Based CostingWhat are the differences between a traditional cost accounting system and an ABC cost accounting system? ABC systems are always more accurate than traditional accounting systems. Do you agree with this statement or not? Explain in 200 word countRespond to this student post in 100 word countBy AbenaI found that learning about a cost accounting system to be very informative and helpful with operating a business. I feel as though I need to learn more about profitability analysis, inventory valuation and cost control. I need to learn more of these concepts if I choose to lead an organization and especially if I start my own business. Many people dream of starting their own business and being successful. But when thinking about that dream, you do not necessarily think of all the particular skills and knowledge necessary to become successful. I always knew that the bottom line was that I would need to make a profit, and I would sell whatever product I had at a higher rate than it took to obtain it. It sounds simple, but I knew the process was much more detailed than that. After learning about cost accounting systems, I have a better understanding of what is actually involved with product pricing and inventory. I enjoyed learning about this because it was of interest to me. I know that I would like to learn more about it and become very familiar with the processes. I think that anyone who would like to own their own business should become familiar with cost accounting systems, and even if you do not own your own business, learning about the systems can help you better understand and make better decisions for the company you work for.

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