Please comment this two separate..

Activity based costing is more accurate because of the detailed cost recording for each category of cost driver. The traditional method is often inaccurate because it attempts to apply one base rate of overhead to all production activities. Activity based differentiates by offering different rates for different cost drivers and allows them to be allocated differently to each product as they are used instead of a broad ineffective rate. ABC is much more utilized today because companies are becoming larger and larger with ever increasing product lines and departments incurring different types of costs. This large number of variables requires a more complex system to accurately track costs and ensure a profitable operation. 30 years ago there were a lot more businesses that had simple operations offering one product or service, this simplicity made the traditional method acceptable for those kinds of operations.

Activity based costing systems are more accurate than traditional costing systems. This is because they provide an exact breakdown of indirect costs. However, ABC systems are more composite and more costly to include. Businesses are more likely to use ABC today than they were 30 years ago because its better classifying the costs earned by the business during its production process. Businesses are able to manage manufacturing performance and improve the quality of products and services. This is why companies are more likely to use ABC today than they were 30 years ago.