Businesses may use two different variants of absorption costing to calculate 'total costs' for their products,...

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Businesses may use two different variants of absorption costing to calculate 'total costs' for their products, namely either Traditional Absorption Costing, or Activity Based Costing (ABC) () Explain what the basic difference is between Traditional Absorption Costing, and Activity Based Costing (ABC) (4 marks) (b) Complete the following table (in bullet point format) to highlight the key advantages and disadvantages of both methods (6 marks) Traditional Absorption Costing Traditional Absorption Costing ADVANTAGES DISADVANTAGES Activity Based Costing ADVANTAGES Activity Based Costing DISADVANTAGES Businesses may use two different variants of absorption costing to calculate 'total costs' for their products, namely either Traditional Absorption Costing, or Activity Based Costing (ABC) () Explain what the basic difference is between Traditional Absorption Costing, and Activity Based Costing (ABC) (4 marks) (b) Complete the following table (in bullet point format) to highlight the key advantages and disadvantages of both methods (6 marks) Traditional Absorption Costing Traditional Absorption Costing ADVANTAGES DISADVANTAGES Activity Based Costing ADVANTAGES Activity Based Costing DISADVANTAGES

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a Traditional absorption costing also known as full costing considers the manufacturing costs both f... View the full answer