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Activity based costing is considered a better method of allocating manufacturing overhead than the more simplified plant-wide overhead allocation method. Name three advantages of activity
Activity based costing is considered a better method of allocating manufacturing overhead than the more simplified "plant-wide" overhead allocation method. Name three advantages of activity based costing over plant-wide allocation. Activity based costing does require more work than a plant-wide allocation. Under what circumstances is it worth the extra effort? What is the typically result when activity based costing is adopted, in terms of cost allocation between different products?
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