Activity based costs — OpenTuition Forums

SShanna10y ago

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 ."

John MoffatTutor10y ago#1

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.

SShanna10y ago#2

Thanks a lot. :)

John MoffatTutor10y ago#3

You are welcome :-)

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