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View Full Version : Benefits & Limitations of using Activity-Based Costing



lshkenny1968
02-01-08, 10:48 AM
Benefits:

-Better profitability measure
-Better decision making
-Provide information to identify areas where process improvement is needed
-Lead to better cost estimation

Limitations:

-Very expensive to install and consuming
-Not include all costs associated with the products
-Some costs require allocations to departments and products based on arbitary volume measures