Before engaging in a major ABC system implementation project, an organization should consider the appropriateness of an ABC system?’ Develop the following 10 points and give examples

• Significant indirect costs
• Complex goods and services
• Losses on high-volume products and profits on low-volume products
• Disagreement by managers over cost allocations
• Bid results
• Age of costing system
• Compare Product Performance
• Determine Accountability Assess Competitiveness
• Recover Cost of Internal Services Provided
• Evaluate Organizational Performance Estimate and Track Costs Assess the cost difference between item processing in different locations Compare product profitability of wholesale lockbox vs. retail lockbox Evaluate where competitive cost advantages may be Identify who used services and how much they were charged Identify the driver of certain costs
• Estimate the resources by Resource Center to meet the projected demand of ACH transactions.