Posted: March 28th, 2017

How does ABC costing differ from traditional allocation methods?

Here are a few items for discussion relevant to this module: How does ABC costing differ from traditional allocation methods? What can an organization learn from the process of applying ABC costing? Some firms have a lot of fixed costs and few variable costs, while other firms are configured the other way around. What affect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods? What are some of the characteristics of firms generally benefiting from ABC cost allocations? Is ABC just a method of allocating overhead costs? If not, discuss