When is it appropriate for companies to use activity-based costing? What are some differences between ABC and traditional costing?© BrainMass Inc. brainmass.com March 4, 2021, 7:25 pm ad1c9bdddf
ABC is appropriate for companies in following scenario:
§ Creates a variety of products and services
§ Has high overhead costs as compared to direct labor
§ An overabundance of data
§ Substantial non-product costs that can dramatically affect true product, distribution channel and customer profitability.
How does this ABC differ from traditional costing systems?
Activity-based costing is ...
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