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Johnson & Johnson operates two divisions: Pharmaceuticals and Consumer Health. The Pharmaceuticals division incurs $2,000,000 in overhead costs, while the Consumer Health division incurs $1,500,000.

Johnson & Johnson operates two divisions: Pharmaceuticals and Consumer Health. The Pharmaceuticals division incurs $2,000,000 in overhead costs, while the Consumer Health division incurs $1,500,000. Compare and contrast traditional costing with activity-based costing (ABC) for allocating overhead costs at Johnson & Johnson. Discuss the advantages and limitations of each method.

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