California Creamery Inc Case 18 2

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    Case 2 Greetings Inc.: Activity Based Costing

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    Case 2 Greetings Inc.: Activity Based Costing

    1. Activity costing would be appropriate 1. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. As seen on previous case, this distortion happens when one product is manufacturing in high volume and the others are manufacturing in complexity as well as in low volume. In this situation Wall Décor should change its costing system for selling its high volume produced products whereas low-volume produced

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    Greetings Inc.

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