Question: Why does ABC correct the allocation of primarily batch and product - or customer - sustaining costs rather than correcting the allocation of unit or
Why does ABC correct the allocation of primarily batch and product or customersustaining costs rather than correcting the allocation of unit
or facilitysustaining costs?
Generally, the allocation of unit and facilitysustaining costs
the traditional costing approach and the ABC approach. Unit
costs
allocated appropriately on a perunit basis, so ABC
Facilitysustaining costs
be traced to certain activities or resources used, so these costs
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