RUNNING HEAD: ABCM IN PILOT ACADEMY TRAININGABCM IN PILOT ACADEMY TRAININGNameInstitutionCourseUnitUnit Code1ABCM IN PILOT ACADEMY TRAINING2Question 1AFrom the pilot training organization, the stakeholders are Students, tutors, andmanagement. Some will find ABCM problematic while others will support it. Students in theorganization will support the program. The costs they incur are linked to the attendance of thetutors. A cost management tactic maximizes value for their money. They pay for services thathave been delivered by the tutors. Activity-based cost management in this case of the studentapplies well as the only cost they will incur is by attending classes meaning they pay for aservice they need. They are therefore able to maximize their resources.The management of the organization is going to find it problematic. There can be a lossof revenue when the opportunity cost is incurred. Other costs such as hiring additional tutor arestill footed by the management. Having extra office too is also a cost that is not linked directly tothe school fees. There is a chance of loss-making if the students are fewQuestion 2Make-buy decisions are the type of decisions a management makes on whether to buy ormake a product, a good or a service. They are complex as many factors are involved in thedecision making process. The process requires clear analysis of the costs involved, benefits ofeither and consider all the factors of production.Make-buy decisions ...
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