Write a response to all three questions posed in the Critical Thinking CT17-3 assignment about ABC in the Financial Services Industry.
Do not write a formal paper. APA formatting is not required. You may structure your response however you would like. This assignment will be graded for the quality of the content of your answer. Grammar, organization, etc. will not be considered. Be sure to answer the questions thoroughly. Do not provide short, simple answers which provide no intellectual thought or insight. Typical “A” answers are at least a paragraph long for each question.
An article in Cost Management, by Kocakulah, Bartlett, and Albin entitled “ABC for Calculating Mortgage Loan Servicing Expenses” (July/August 2009, p. 36), discusses a use of ABC in the financial services industry.
Read the article and answer the following questions.
What are some of the benefits of ABC that relate to the financial services industry?
What are three things that the company’s original costing method did not take into account?
What were some of the cost drivers used by the company in the ABC approach?
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