Automotive manufacturing companies such as Ford and GM have successfully implemented ABC over the past few decades, and achieved profitability in a competitive environment despite the fact that product offerings have become increasingly diversified. Drawing from the module content, your text, and supplied articles, review the critical considerations in applying the activity-based costing method to a large automobile manufacturing company.
Answer the following questions:
- What are the most prominent signs that ABC methods might be appropriately applied to product costing for an automobile manufacturing company?
- Should managers be concerned about broad averaging of product costs?
- What are the steps required to implement ABC within the company?
- Name the four classifications of the ABC cost hierarchy and discuss an example of each type of cost classification for an auto manufacturer.
- Name a significant challenge in the implementation of ABC within the company. Rationalize your response.
- Name a significant opportunity in the implementation of ABC within the company. Rationalize your response.
In a well-written paper formatted according to the CSU-Global Guide to Writing and APA Requirements, answer the above questions.
Your paper should meet the following requirements:
- 2-3 pages in length
- Formatted according to CSU-Global standards
- Include at least 2-3 outside sources.
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