Define and explain activity-based costing (ABC) systems. Be sure to compare simple and ABC costing systems by explaining the benefits and limitations of each.

 

Define and explain activity-based costing (ABC) systems. Be sure to compare simple and ABC costing systems by explaining the benefits and limitations of each. Additionally, reread the article Rethinking Activity-Based Costing, and express your opinion concerning whether or not you agree with the pitfalls and proposed changes, as expressed in the article. Would the proposed changes make ABC a commonly applicable costing method? Elaborate and fully support your position.

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