If a company manufactures a batch of 50,000 units and produces 50 units per machine hour, here is how the cost assigned to the units with ABC and without ABC compares: As the tables above illustrate, with activity based costing the cost per unit decreases from 50.48 to 50.37 becalae the cost of the setup activity is spread over 50,000 units instead of 5.000 units. Without ABC, the cost per unit is 50.40 regardless of the number of units in each batch. If companies base their selling prices on costs, a company not using an ABC approach might lose the large batch work to a competitor who bids a lower price based on the lower, more accurate overhead cost of \$0,37. Ir's also possible that a company not using ABC may find itself being the low bidder tentiuploadi2013/10/3sx-table-0352xpme roduct, since its 50.40 is lower than the ABC model of 50.46 for a batch size of If a company manufactures a batch of 50,000 units and produces 50 units per machine hour, here is how the cost assigned to the units with ABC and without ABC compares: As the tables above illustrate, with activity based costing the cost per unit decreases from 50.48 to 50.37 becalae the cost of the setup activity is spread over 50,000 units instead of 5.000 units. Without ABC, the cost per unit is 50.40 regardless of the number of units in each batch. If companies base their selling prices on costs, a company not using an ABC approach might lose the large batch work to a competitor who bids a lower price based on the lower, more accurate overhead cost of \$0,37. Ir's also possible that a company not using ABC may find itself being the low bidder tentiuploadi2013/10/3sx-table-0352xpme roduct, since its 50.40 is lower than the ABC model of 50.46 for a batch size of