ACC501 case 5



ACC501CS5 – (3-5 pages double spaced courier new 12 font)

Case assignment expectations:

Carefully review the material in the link below.

Review the Farm Financial Standards Council case study from the internet. John & Mary Farmer.

LENGTH: 3-5 pages typed and double-spaced

The following items will be assessed in particular:

Farm Financial Standards Council Model Case

  1. Do you think that this case study with it proposed solutions will be useful to agricultural enterprises seeking to employ management accounting techniques? Why? Be specific in identifying benefits and possible drawbacks to the proposed solutions.

  1. If the Farm Council Case did not use Activity Based Costing, identify several dysfunctional decisions that could be made using traditional cost allocation. Which solution do you prefer, the initial or alternative solution proposed in the case? Explain the difference between the suggested solution and alternative solution.

  1. Read this article: Throw Out Fixed and Variable Cost Thinking—Bring In Activity-Based Costing for Distribution Decisions retrieved May 9, 2011 from:”> Now discuss the assertions this author is making in terms of variable and fixed costing and why ABC may make more sense in these type of settings. Justify your answer with good reasoning. You should attempt to integrate the thoughts of this article and your critique of it with the comments you make above.


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