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Kitchen Appliances Ltd is considering adopting ABC costing and has identified the following five activity...

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Accounting

Kitchen Appliances Ltd is considering adopting ABC costing and has identified the following five activity cost pools if it makes the switch: 1. Purchasing 2. Handling materials 3. Machine setups 4. Assembly 5. Utilities Required: i. Identify a suitable cost driver for each of the five activity cost pools. ii. What would make the company switch to an ABC system?

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