Agencies of the U.S. federal government sometimes create handbooks on various business topics. The U.S. Federal Aviation Administration created the following handbook: Business Process Improvement (Reengineering): Handbook of Standards and Guidelines, November 30, 1995, version 1.0, available at www.wiley.com/canada/eldenburg. Chapter 5 of the handbook addresses activity-based costing. Skim the chapter and answer the following questions.
REQUIRED
A. Why are government agencies interested in improving their costing systems?
B. List the five "Steps for Performing ABC" given in the handbook. Compare these steps to the steps given in this chapter. List their similarities and the differences.