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
Ask the Tutor ACCA MA
Activités based costing
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.
Sign in to reply to this topic.
