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Define and explain activity-based costing (ABC) systems.

2-1 discussion: ABC and Time allocation: What Wins? (chapter 5) Cost Accounting, A Managerial Emphasis-fourteenth edition.

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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