i. A more realistic product cost is provided especially where overheads of factory forms
significant proportion of total cost
ii. More overheads can be traced to individual products based on the activities being undertaken
iii. ABC recognizes that its activities which cause overheads and it is product which consume
those activities; hence the overheads
iv. It provides reliable information for decision making
v. It is flexible to trace costs to services, products, customers etc.
vi. overheads are caused by volumes of output in some are caused by complexity and diversity of
products.
marto answered the question on March 4, 2019 at 06:12
- What factors should be taken into consideration before setting up a cost accounting system(Solved)
What factors should be taken into consideration before setting up a cost accounting system
Date posted: March 4, 2019. Answers (1)
- What should be put into consideration in order for the system to be efficient.(Solved)
What should be put into consideration in order for the system to be efficient.
Date posted: February 26, 2019. Answers (1)
- Give the possible causes of discrepancies revealed by physical stock counts include:(Solved)
Give the possible causes of discrepancies revealed by physical stock counts include:
Date posted: February 26, 2019. Answers (1)
- Give the essential requirements of an effective stock control system.(Solved)
Give the essential requirements of an effective stock control system.
Date posted: February 26, 2019. Answers (1)
- Give the advantages of Standard Costing:(Solved)
Give the advantages of Standard Costing:
Date posted: February 26, 2019. Answers (1)
- List the arguments in favour of Marginal Costing:(Solved)
List the arguments in favour of Marginal Costing:
Date posted: February 26, 2019. Answers (1)
- What are the arguments in favour of Absorption (Full) Costing?(Solved)
What are the arguments in favour of Absorption (Full) Costing?
Date posted: February 26, 2019. Answers (1)
- Factors to consider in make -or - buy decisions(Solved)
Factors to consider in make -or - buy decisions
Date posted: February 26, 2019. Answers (1)
- What is the role of cost accounting in decision making(Solved)
What is the role of cost accounting in decision making.
Date posted: February 26, 2019. Answers (1)
- Factors influencing cost estimation method used by a manufacturing company(Solved)
Factors influencing cost estimation method used by a manufacturing company
Date posted: February 26, 2019. Answers (1)
- What are the features of process costing.(Solved)
What are the features of process costing.
Date posted: February 26, 2019. Answers (1)
- Give the functions of budgets.(Solved)
Give the functions of budgets.
Date posted: February 26, 2019. Answers (1)
- List the ways to improve cash management.(Solved)
List the ways to improve cash management.
Date posted: February 26, 2019. Answers (1)
- What are the causes of difference in cost and financial accounts(Solved)
What are the causes of difference in cost and financial accounts
Date posted: February 26, 2019. Answers (1)
- Give the problems in cost estimation.(Solved)
Give the problems in cost estimation.
Date posted: February 26, 2019. Answers (1)
- Give the Limitations of budgeting(Solved)
Give the Limitations of budgeting
Date posted: February 26, 2019. Answers (1)
- Give the causes of stock discrepancies.(Solved)
Give the causes of stock discrepancies.
Date posted: February 26, 2019. Answers (1)
- Give the factors considered in selecting overhead absorption rate(Solved)
Give the factors considered in selecting overhead absorption rate
Date posted: February 26, 2019. Answers (1)
- Give the definition of a cost centre and its application(Solved)
Give the definition of a cost centre and its application
Date posted: February 26, 2019. Answers (1)
- Give the causes of labour efficiency variance(Solved)
Give the causes of labour efficiency variance
Date posted: February 26, 2019. Answers (1)