but ABC is more Traditional costing and ABC both [Select) [Select] Previous Next Submit but ABC...

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but ABC is more Traditional costing and ABC both [Select) [Select] Previous Next Submit

but ABC is more Traditional costing and ABC both [Select] [Select] [Select Allocate indirect overhead Allocate direct costs.

but ABC is more Traditional costing and ABC both [Select] [Select] [Select] Cost effective to implement xt Costly to implemen

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Answer 1

Answer #1

Solution :

Traditional costing and ABC Costing both Allocate Indirect Overhead, but ABC is more costly to implement.

Explanation :

There are two method for allocating overhead or indirect costs : Traditional Method in which OH are allocated on the basis of Direct Labor Hours, Machine Hour or any other major basis. In ABC costing, OH are alloacted on the basis of Activities performed in the process or products. ABC costing is more time consuming and suitable for big organisation where the cost accuracy is measure concern for each product or process. In ABC costing,tracking of activities and cost estimation are the challanges therefore it requires special efforts and setup in any organisation and thats why it is costly as compare to traditional costing system.

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but ABC is more Traditional costing and ABC both [Select) [Select] Previous Next Submit but ABC...

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Add Answer to:
but ABC is more Traditional costing and ABC both [Select) [Select] Previous Next Submit but ABC...