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Saudi Telecom Company (STC) provides both internet and mobile services. The following costs were incurred in 2023: Total Overhead Costs: SAR 1,000,000 Number of Customers:

Saudi Telecom Company (STC) provides both internet and mobile services. The following costs were incurred in 2023:

  • Total Overhead Costs: SAR 1,000,000
  • Number of Customers: 500,000
  • Number of Mobile Users: 300,000
  • Number of Internet Users: 200,000 a) Calculate the overhead cost per customer, mobile user, and internet user using activity-based costing. b) Discuss the advantages of activity-based costing over traditional costing methods.

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