a) Why would a product costing system based on a single, volume-based cost driver tend to overcost high-volume products in comparison to an activity-based costing system?

b) The first ‘Real Life’ in ‘When should ABC be used?’ suggests that the adoption of activity-based costing in Australia and New Zealand has not been as high as one might expect. What limitations and other challenges to implementing activity-based costing may be impacting the adoption of activity-based costing?

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A Product Costing based on single cost driver tend to be overcost while comparing to ABC because all ... View the full answer