Sample Essay

The concept of Activity Based Costing is defined and explained in the book thoroughly and comprehensively. The basic idea of Activity Based Costing is discussed in the book with theoretical aspects and a practical approach though present as examples is quite insufficient to understand the practical application of Activity Based Costing system in companies. The book provides the overall methodology and process of implementing Activity Based Costing in companies and the article under review presents the practical implication and usefulness of Activity Based Costing in companies. The subject matter in the book focuses on the basic concept and techniques involved with Activity Based Costing whereas the article relates this theory with practical application of the cost system in companies.

The conceptual framework presented in the book is practically applied by the research carried out for the article and its usefulness is tested by the researchers in Australian firms at the final stage of implementation. The basic ideology and system of Activity Based Costing is presented in the book whereas this idea is carried further by the researchers in the article as they test the rate of application and successfulness of Activity Based Costing as compared to conventional costing systems. The book explains the various stages of Activity Based Costing with respect to cost identification and allocation whereas the article presents the rate of success in these stages rather than explaining the methodology and techniques involves in these stages

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