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In addition to absorption and marginal costing, there are some other costing methods, like Activity Based Costing (ABC). A firm can use ABC to allocate

In addition to absorption and marginal costing, there are some other costing methods, like Activity Based Costing (ABC). A firm can use ABC to allocate the overhead cost based on business activities. Briefly discuss the importance of choosing an appropriate cost driver for allocating overhead cost.

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