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Dear experts;
whether depreciation is facility sustaining or nor in ABC?. if yes, whether we need to avoid it or not?Facility-level activities such as plant depreciation, property taxes, utilities are activity costs. We need to recognise these.
from text, i understand that we need to avoid these costs in ABC bcoz there is no direct cost drivers can be identified for these activities. and this is one of the drawback of ABC.
looking for some experts opinions.
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good question, how cost can be avoided only because ABC chosen?
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