Explain about activity based costing vs traditional costing

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Reference no: EM1336811

Explain about Activity based costing vs traditional costing

How does ABC costing differ from traditional allocation methods?

What can an organization learn from the process of applying ABC costing?

Some firms have a lot of fixed costs and few variable costs, while other firms are configured the other way around. What affect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods?

What are some of the characteristics of firms generally benefiting from ABC cost allocations?

Is ABC just a method of allocating overhead costs? If not, discuss.

Reference no: EM1336811

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