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Activités based costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Activités based costing

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • November 8, 2019 at 7:59 am #551813
    Ha
    Participant
    • Topics: 54
    • Replies: 54
    • ☆☆

    The question is asked the benefit of using activity based costing

    And ” activity based costing is particularly useful in single product business ” is not the benefit..

    They showed ” activity based costing is most likely to be useful where there is a wide and diverse product range ”

    Can you pls explain why ?

    Thanks Mr John

    November 8, 2019 at 11:00 am #551819
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    It is because ABC is a method of sharing the overheads between several products. If there was only one product then there would be no need to share the overheads – they would all be charged to the one product.

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