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Hi
“A single cost driver may not explain the cost behaviour of all items in a cost pool. An activity may have two or more cost drivers.” – It is disadvantages of ABC.
I dont understand why? Because ABC has multiple cost drivers.
Thank you in advance
There are multiple cost drivers because there are multiple cost pools!
In exam questions, each cost pool has just one cost driver. In practice a cost pool may have more than one cost driver.
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