According to Zelman McCue Glick and Thomas (2014) activity-based costing (ABC) requires increased attention as compared to traditional top-down cost-allocation methods. The assumption for ABC is that activities consume resources and products consume activities. Equally the assumption is that if you can control activities or processes then you can also control costs. The supposition is that if you can measure the resources an activity consumes then you can provide a more accurate picture of costs as compared to the traditional top-down cost-allocation method (Zelman et al. 2014).
In this assignment you will compare and contrast traditional top-down cost allocation and the ABC methodology. Using the module readings Argosy University online library resources and the Internet respond to the following:
Give reasons to support your statements.
Write your initial response in approximately 300500 words. Apply APA standards to citation of sources.
Zelman W. N. McCue M. J. Glick N. D. & Thomas M. (2014).Financial management of health care organizations(4th ed.). San Francisco CA: Jossey-Bass.