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7) Under the ABC system costs are allocated to the customer. The cost allocation base or cost driver for each cost pool measures the amount

7) Under the ABC system costs are allocated to the customer. The cost allocation base or cost driver for each cost pool measures the amount of benefit received. In an ABC system where the customer is the cost object, shared costs are classified into categories. For a pharmaceutical company which manufactures, packages, delivers the products to the customer and some cases stock the selves of the customers what are the categories and give an example of how the category applies. (5)

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