P2 syllabus
ABC Benefits and Drawbacks 9 / 10
ABC can bring a more meaningful analysis of costs generally
Merits of ABC Quiz
1 quiz questions - click here to start
ABC Criticisms
ABC is especially suitable for use in services where overheads are high and diverse however.
The cost of obtaining and interpreting the new information may be high
Some arbitrary cost apportionment may still be used
It's very difficult for a single cost driver to fully explain cost behaviour