ABC and variable costs.

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February 17, 2018 at 1:40 am #437684
myacca1990
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“ABC is of less benefit if the majority of the costs suffered by an organisation
are variable costs.”
How is the above statement correct?
So i guess that means the fixed overheads are let,s say $15000 and they are driven by different cost drivers.So ABC is for allocating the fixed overhead costs not the variable costs?Are not the cost drivers variable in nature?
February 17, 2018 at 12:15 pm #437746
John Moffat
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ABC is trying to absorb the fixed overheads in the ‘fairest’ way.

Variable costs are, by definition, varying on a per unit basis already.
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