Question: The basic ideas justifying the use of Activity Based Costing (ABC) and Activity Based Budgeting (ABB) are well publicized and the number of applications has

The basic ideas justifying the use of Activity Based Costing (ABC) and Activity Based

Budgeting (ABB) are well publicized and the number of applications has increased. However,

there are apparently still significant problems in changing from existing systems.

Explain which characteristics of an organization may make the use of ABC useful and

the problems that may cause the organization not to use or abandon ABC

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