Considering what you have learned in this module, explain when it might be more beneficial for a company to use an activity-based costing system vs. a traditional overhead allocation system. What are the pros and cons of using an ABC system? Describe a scenario in which a company that sells two or more products or services may get different costing results by using an ABC system versus a traditional overhead allocation system. 

Briefly describe the steps involved in the use of an ABC system.

Answer rating: 100% (QA)

ActivityBased Costing ABC and traditional overhead allocation systems are two different approaches to allocating costs to products or services The choice between the two methods depends on the complex... View the full answer