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Disadvantages of activity based costing
1) It is essentially not the panacea for all ills.
2) It absorbs a lot of resources.
3) Too much emphasis on customer viability can leas to problem such as cheaper product and therefore potentially lower customs segmentation.
4) It may lead to weaker customs segmentation.
5) It takes no account of opportunity cost.
I have two problems due in two hours can you do this for me?
Explain what is meant by traditional costing system. Support with example.
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