Differences in costs between the rvu and tdabc methods

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Assignment:

What explains the differences in costs between the RVU and TDABC methods?

RVU uses department wide averages, as compared to ABC using actual direct materials cost and labor costs - thereby having lower profit values.

While It is better than RCC, since it considers time for the procedure, and complexity of the procedure and other data.

But It still is an abstraction and not the exact values.

Reference no: EM133210822

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