Activités based costing

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November 8, 2019 at 7:59 am #551813
Ha
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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
November 8, 2019 at 11:00 am #551819
John Moffat
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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.
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