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Samsung Case Study
The University of Arizona Global Campus ACC 202 Principles of and more Essays (university) Financial Accounting in PDF only on Docsity! ACC 202 Samsung Case Study The University of Arizona Global Campus ACC 202 Principles of Managerial Accounting Activity-Based Costing in Samsung Company Case Study The implementation of ABC or Activity Bases Costing will highly benefit Samsung company. It is something that will help the company to reach its global marketing standards while at the same time maximizing profit (Niasti et al., 2019). Notably, Activity Based Costing is described as a method that involves assigning indirect and overhead costs. These include utilities and salaries. In most cases, it is a system grounded on different activities. They tend to consider the unit of work, task, and event designed with specific goals. It is also important to note that different factors will play a central role and influence personal decisions relating to Activity Based Costing. These factors mainly include decision- making on the usefulness of accounting data and information, internal performance measure, and organization support. In essence, the effectiveness of accounting data and information is a critical factor that is often incorporated in the decision relating to Activity Based Costing. In most cases, it is an element that is described and considered to have an immensely positive influence on the overall process (Jung, 2014). It is worth noting that there is a close relationship between the error costs and the usefulness of accounting data and information on most occasions. Besides, the benefit of accounting data and information is vital in gauging the Samsung company's apparent adoption. On the other hand, organizational support is also a crucial thing. On most occasions, it tends to significantly influence the Activity Based Costing utilization in the Samsung Company. In this regard, top management and non-accounting management played a crucial role in directing the success of ABC within the firm. Finally, performance measurement regarding the internal measures had a lot of positive and significant influence on the ABC adoption. In this regard, a great emphasis should be placed on the company, more so on its financial measures, and ensure that the considerations are aiming at minimizing the costs while at the same time maximizing the profit in the long run. Preferably, ramifications attached to the adoption of ABC implementation in the overall Global smartphone and its market are crucial. The analysis had argued that smartphones are often cheaper in terms of their production than the other products in the long run. In most cases, the analogy is based on the fact that single plant-wide factors have an overhead cost technique that fails to correctly incorporate ABC or Activity-based costing. However, it will be necessary to restructure the cost distribution approach in Samsung using activity-based costing or ABC (Keel et al., 2017). It ensures that all the costs involved in the production or manufacturing process are allocated and selected correctly. It also provides the proper allocation of the activity drivers that have to be measured accurately. Most of the costs relating to different objects used are often centered on allocating specific contents regarded as costs pools. The cost pools are conducted based on the particular objectives of selected things and how they are being utilized in the manufacturing of Samsung phones. Markedly, after the completion of the all-costs allocation, ABC or Activity Based Costs systems are often used in formulating the reports for the managerial decision making. Samsung C&T should adopt Activity Based Costing Mechanism as this will be fundamental in costing processes. However, the process could be based on three prominent analogies and ways (Nguyen, 2021). First and foremost, the company could engage in increasing the overall number of parametric cost pools. In this regard, Activity Based Costing or ABC will help the Samsung Company conduct an approach of identifying the various activities required to be performed through organizational resources. However, the narrow allocation won't be reasonable since it will create ambiguity and an unclear understanding of resource utilization and
