4-1 day | Accounting homework help


Below is the question and student rsponse. Reply to the students response in 150 words


 In its advertising, Ford Motor Company says “Quality is Job One.” Ford is indicating that good quality is the most important consideration for its customers. This would include customer satisfaction on delivery dates and specific areas of car performance, including properly closing doors, and defect rates. Explain how Activity Based Costing can help supply this information to Ford’s management

Students response

 Ford’s highlighting the quality as apart of their sales tactic. They are emphasizing additional services to customers in order to boost their sales.  Activity Based Costing can assign costs to these additional services and provide the total costs per unit based off of the important considerations to attract additional clients.  an Activity Based Costing system would help management decide which “extra’s” are making the product too expensive and help them base their pricing in order to maximize profits.  

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