Discuss with suitable examples why activity-based costing (ABC) is better than the traditional costing system. Provide a suitable numerical example of ABC in the manufacturing sector and show all the necessary calculations required under the ABC system.

                                         

Note: Your answer must include suitable numerical examples showing all the calculations of the ABC system. You are required to assume values of numerical examples of your own and they should not be copied from any sources.

Answer rating: 100% (QA)

ActivityBased Costing ABC is a more accurate and sophisticated cost accounting system compared to the traditional costing system Heres why ABC is considered better along with a numerical example in th... View the full answer