Evaluate the potential for the use of activity-based costing Answer: T

QUESTION

Evaluate the potential for the use of activity-based costing
Answer: The activity based costing allocates the overheads in more logical manner than a traditional method, in this method first the activities are identified and thereafter the overheads are allocated. Hence the potential of Activity based costing is that it allows the exact determination of the cost¦

of the product and it can be also applied on the two products, as in cased of two products the activities for each of the product can be identified separately and thereafter the costs can be allocated.

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