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Explain How Activity Based Costing Would Be Implemented Using an ERP

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Essay

Explain how activity based costing would be implemented using an ERP system.In doing that,explain the advantage of using ERP with activity based costing.


Definitions:

Investment

The distribution of assets like money or time with the hope of earning revenue or gains.

Cost Method

An accounting approach used to measure the value of an investment, based on the cost to acquire it, minus any impairments.

Unamortized Acquisitional Fair Value Adjustments

The portion of the adjustments to the fair values of acquired assets and liabilities through an acquisition that has yet to be amortized over their useful life.

Unrealized Profit

Profit that has been generated on paper from investments but not yet realized through a sale or transaction.

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