[irfan1986]

Disadvantages of ABC:
– if overhead cost is the small proportion of the overall cost then ABC will not give the significant benefit.

[irfan1986]

its false statement, because we variable cost are in bots same, but in ABC we only recalculate the ovher head (Fixed Production) Cost. and we save some cost per unit because of the cost drivers. so the more the fixed cost the more accurate the ABC.

Thank you

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