According to Zelman, McCue, Glick, and Thomas (2014), activity-based costing (ABC) requires increased attention as compared to traditional, top-down cost-allocation methods. The assumption for ABC is that activities consume resources and products consume activities. Equally, the assumption is that if you can control activities or processes, then you can also control costs. The supposition is that if you can measure the resources an activity consumes, then you can provide a more accurate picture of costs as compared to the traditional, top-down cost-allocation method (Zelman et al., 2014).
In this assignment, you will compare and contrast traditional, top-down cost allocation and the ABC methodology. Using the Internet, respond to the following:
Give reasons to support your statements.
Write your initial response in approximately 300–500 words. Apply APA standards to citation of sources.