26 Feb 2021
Pros of Activity Based Costing
- Provides ,realistic costs of manufacturing for specific products.
- Allocates manufacturing overhead more accurately to products and processes that use the activity
Cons of Activity based costing
- Collection and preparation of data is time-consuming
- Costs more to accumulate and analyze information
- Discuss the 2 pros and 2 cons of activity-based costing.
- Give an example of a situation where activity-based costing could be used effectively. Explain your reason.