Question: (a) Comment on the potential problems of using a labour-based cost driver to allocate overhead to products, and discuss why companies still adopt traditional absorption

 (a) Comment on the potential problems of using a labour-based cost

(a) Comment on the potential problems of using a labour-based cost driver to allocate overhead to products, and discuss why companies still adopt traditional absorption costing despite the problems. (6 marks; max 210 words)

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