Page 38 - PM Integrated Workbook 2018-19
P. 38

Chapter 2





                           Advantages and disadvantages of ABC






                               Advantages                                    Disadvantages
             

                    An understanding of what drives                 Cost and time involved
                     costs should improve cost control
                                                                     Limited benefit if production

                    More accurate cost per unit                      overheads are minimal or
                     resulting in better:                             mainly driven by level of

                                                                      production
                     –     pricing
                                                                     Difficult to identify cost pools
                     –     cost control                               and drivers


                     –     decision making














































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