What is ABC Costing and how it is different from traditional costing method?

Question added by Saad Kapadia FCA - CIA - CFE - CISA - CRMA-FMVA , Head Of Internal Audit , Cenomi Centers
Date Posted: 2015/04/09

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by Mirza Babar Baig , Accounting Manager , OMNISPIRE Education

Activity based costing (ABC) assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours. Activity based costing first assigns costs to the activities that are the real cause of the overhead.

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