The controller of Tri Con Global Systems Inc. devised a newcosting system based on tracing the cost of activities to products.The controller was able to measure post-manufacturing activities,such as selling, promotional, and distribution activities, andallocate these activities to products in order to have a morecomplete view of the company’s product costs. This effort producedbetter strategic information about the relative profitability ofproduct lines. In addition, the controller used the same productcost information for inventory valuation on the financialstatements. Surprisingly, the controller discovered that thecompany’s reported net income was larger under this scheme thanunder the traditional costing approach.
Why was the net income larger,and how would you react to the controller’s action?
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
