Advanced Managerial Accounting Report Essay Example | Topics and Well Written Essays - 250 words - 1

Advanced Managerial Accounting Report - Essay Example Most Managers inquire before implementing any of these cost systems where ABC is given a first priority due to its production costs that are considered higher to those of conventional banking (Weygandt, Kimmel, and Kieso 56). ABC is a contrast of conventional banking since it helped patients in their treatment when it came to hospitals. Conventional accounting is a simple method for managing costs compared to ABC. However, it is not accurate and most of the time is accompanied by under-costing and also over-costing. ABC is able to capture changes through direct measurement of activity levels thus adjusting from distortions that arise in the conventional cost system (Weygandt 45). However, there exists a similarity among these two cost systems where provision of costs similar to those of ABC can be structured by conventional accounting. In conclusion, both cost systems; ABC and conventional accounting have their place of application and duration of time matters. They all are implemented differently but all of these systems of accounting have a purpose in any business despite of different strengths and weaknesses. ABC works best for most businesses compared to conventional