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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Activity based costs
Hi sir,
I just wonder the reason why “Activity based costs are not the same as relevant costs for the purpose of short-run decision making .”
Relevant costs are when there are extra costs being incurred.
Activity based costs are simply splitting the costs between various activities – it does not mean there are extra costs.
Thanks a lot. 🙂
You are welcome 🙂