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UNO [17]
4 years ago
12

LO 6.3What are the primary differences between traditional and activity-based costing?

Business
1 answer:
gtnhenbr [62]4 years ago
7 0

Answer:

Difference between traditional costing method and activity based costing method is mentioned as follows:-

  • Traditional costing method is the technique in which products are implemented with indirect cost according to overhead rate whereas activity based costing relatively assign cost to product according to their activity in  consumption.
  • Traditional costing has easy implementation at low cost but activity based costing is costly and complex.
  • Accuracy of traditional costing is low as compared with activity based costing

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