Produce a question from this

Activity Based Costing (ABC) has many advantages and disadvantages to it for management. The book states that ABC system is great for internal decisions and not so great for external. To implement this would cause for management to have two reports to do when it is time, one at a different method for external people and the ABC for internal. A used to work at Lowes one summer but reading on this topic has allowed me to see some things through their organization. The book states that Lowes uses this method. As an accountant things you must consider are what all is put into this versus what can be excluded. One example I can think of that was similar to the homework problems from the chapter is when it talks about custom products. Lowes could use the method to easily figure out margin costs and more from using the custom vs standard on their fences. The color white was the standard that was sold but online they had different colors such as tan that was always asked about in store. Making it a custom product Lowes could charge more but the downfall is less people wanted to wait on the extended time to get the custom product. I thought that was interesting how you could see the real world application into some of the homework that we have to do for this week. I feel that at Lowes there are so many products that are standard versus custom that it would be difficult to have an ABC system for each one, but it would provide a lot of good information for management to make decisions easier and quickly with the amount of information that is given