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Can we say that “after ABC costing many fixed cost turn into variable to the number of activities it is done.”
For example fixed OH is broken to Delivery OH etc. So now after ABC we will charge it as Cost per delivery as number of delivery is our cost driver.
Am I right?
You cannot say that. The costs themselves do not become variable – they remain fixed costs.
It is simply that we are choosing to absorb the fixed costs in the most sensible way for the purposes of getting a realistic cost per unit when more than one product is being produced.
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