Page 36 - P1 Integrated Workbook STUDENT 2018
P. 36

Chapter 2





                           Using activity based costing





               3.1  Advantages of ABC

               When compared to other costing systems ABC has the following advantages and
               disadvantages.

                           Advantages

                               Costs are understood better.


                               Costs are absorbed better.

                               Cost control can be improved.

                               Pricing decisions can be improved.

                               Decision making can be improved.

                               ABC can be used in service industries.











































               32
   31   32   33   34   35   36   37   38   39   40   41