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Category: Business
Word Count: 1736
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ACTIVITY BASED COSTING

Activity Based Costing (ABC) is a cost management method that first accumulates overhead costs for each of the activities of the area being costed, and then assigns the costs of activities to the products, services or other cost objects that require that activity. (Horngren, Sundem & Stratton 2002) ABC is more accurate than traditional cost accounting which arbitrarily allocates overhead to the cost objects. ABC allows an organization to determine the actual cost ass
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