What are two advantages and two disadvantages of the ABC method of costing?

Question

Question

Answer 1

Answer #1

Not sure based on your question, whether you need just a mention or explanation of it.

But, Here are few of them:

Advantages:

More accurate

Easy to understand the allocation of overheads

Provides cost saving techniques

Benchmarking can be done

Disadvantages:

Takes a lot of time.

Needs good and special knowledge of this costing

Not accepted by GAAP

Note: If you need more clarification in it, Please comment below, i will explain it.

Answer 2

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