Page 35 - Microsoft Word - 00 Prelims.docx

Advanced Costing Methods

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

29