12.6 ABC is a costing system that was developed in the 1980s as a result of an increasing awareness in businesses of the deficiencies of traditional approaches to production overhead absorption.

i) Describe the principal deficiencies in the traditional product costing system which ABC seeks to correct.

ii) Describe the key features of ABC.

iii) Identify and comment upon a significant advantage and a significant disadvantage associated with the typical implementation of an ABC system.