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Hi,
I’d like to ask whether the statement below is true and why.
Where overheads are a relatively small proportion of total costs and where direct labour recovery rates are low there’s little point of adopting ABC.
Thanks.
Hi @Stephanie
I also think it’s true.
I can’t translate to myself “labour recovery rates” and understand clearly, but regarding overheads:
Purpose of ABC is to allocate overheads more accurately. And if there is only a little of overheads, why do we need to adopt ABC – it wouldn’t change big picture.Thanks guys for the answer. 🙂
Yea I don”t understand the “direct labour recovery rates” part too.
For those who do, could you please explain?
Thanks!
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