Question: Claire Elise is not convinced that using activity based costing techniques

Claire Elise is not convinced that using activity-based costing techniques allows her to better control the costs in the HR department, so she asks the HR manager to estimate costs based simply on the number of employees. Claire also asks the manager to be prepared to explain why the company should use activity-based costing for her department.

A. Using the data in Exercise 39, calculate the HR department cost per employee for Elise Entertainment.
B. Why should Elise Entertainment use activity-based costing?

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  • CreatedMarch 11, 2015
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