Choose a product that would lend itself well to activity-based costing and explain why. What are...

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Accounting

Choose a product that would lend itself well to activity-basedcosting and explain why. What are the activities that raise costsand can they be decreased? How?

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Solution ABC as stated in the above comments is primarily seen as an overhead allocation system which is supposed to provide more accurate product cost That is true but is the less interesting side of ABC The first and most interesting information provided by an ABC system is information on the way the organization produce value for its partners of for the market This is done trough the ananlysis of the production of the activities carried out in the organization The production measure of the activities are also allocation bases but they    See Answer
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