Sample Essay

The basic concept covered in the article and the corresponding area in the book is related to Activity Base Costing systems. The concept of Activity Based Costing is not new and a lot of research and study has been performed in this area in the last 20 years and much research is being done currently as well. The requirement of prior experience and knowledge regarding ABC is not necessary in understanding the basic concepts of ABC as the subject matter in the book are quite extensive in explaining the concepts of ABC costing.

Prior experience and knowledge is necessary on the other hand if a person is directly studying the article under review as it does not provide a comprehensive theory for the concept and focuses on success in implementation of ABC. In order to understand and comprehend this article completely an effectively a person with no management accounting experience and knowledge would be advised to study the concept of cost accounting and the various systems that can be applied in the costing of products, process and departments of a company. The theories and concepts presented in the article can only be understood only after the basic concept of ABC is known and understood completely.

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