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How does ABC costing differ from traditional allocation methods What

 
Muhammad Jawaad Ahmed's Avatar
  • Answered by:Muhammad Jawaad Ahmed
  • Chartered Accountant
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Customer Question

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.

Submitted: 1085 days and 2 hours ago.
Category: Homework
Value: $16
Status: CLOSED

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Expert:  Muhammad Jawaad Ahmed replied 1084 days and 7 hours ago.

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Expert TypeChartered Accountant
Category: Homework
Pos. Feedback: 98.6 %
Accepts: 1928
Answered: 4/21/2010

Experience: Doing Chartered Accountancy

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Customer replied 1083 days and 23 hours ago.

Thanks

 
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