Activity based costing

I must confess, I do not read scientific journal articles in my spare time for entertainment. Needless to say then, I did not approach the reading of, “Activity-based Costing for the Small Business: A Primer”, with great enthusiasm. Although I will not go so far as to say that reading this article has transformed me into a certified scientific journal “junky”, I will admit that I found this article particularly interesting because of its applicability to the material we will soon be covering in class. In essence, this article outlines the advantages a small business owner will gain by using activity-based costing over the more traditional method of costing, absorption costing, for managerial accounting purposes.
After the start-up of a small business the owners find themselves in need of an accounting system to meet the continuing information needs of investors, lenders, and various taxing authorities. An accounting system that meets these needs is in large measure gov...