Accounting
use of activity- based costing (abc), would be greatly assisted by combining paradigms C and D in the determination of product promotion and pricing strategies. This combination would add more depth in the role of activity- based costing (abc), when it comes to forcing the use of alternative cost structures. As a result, the shifts from Paradigms C and D, which focus on per-units, could be achieved by the multiplication of the expected actual and actual volumes for each product, through the per- unit amounts at every respective volume production level.
It would then be easy to develop contribution margins in the product line income statements.
Ferrara concludes that activity- based costing (abc) will continue to play a large role in management accounting, and along with combining paradigms B and D, it will have a huge influence as management accounting proceeds to the 21st century.