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ABC Costing - AirTran

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In this module, we are going to review your organization and its applicability for Activity Based Costing (ABC). 
Identify a product or service in your organization that could use ABC. Then identify at least two activities for ABC and the appropriate cost drivers for those activities. Estimate the application rates for each cost driver. 
If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual. 
Your report should include 
• The name and nature of the organization 
• The activity and time period you used 
• The inputs you used 
• Your results 
• Any implications from your results 
This should be a two to three page report. 
SLP assignment expectations: 
Use information from the modular background readings as well as any other reliable resources you use. Please cite all sources and provide a reference list at the end of your paper. 
LENGTH: 2-3 pages typed and double-spaced. 
The following item will be evaluated in particular: 
1. Your ability to explain and apply ABC with your own company.
Solution
The chosen organization for the paper is AirTran Airways. A detailed discussion of the nature of the organisation is provided. The time period chosen for the paper is financial year 2008.The discussion also includes details of the inputs, results and implications, based on which a strong set of conclusions have been drawn out.
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