Three products have been costed using both a traditional labour based absorption costing system and an activity based costing system. The results for the unit costs are as follows: Product 1 2 3...


Three products have been costed using both a traditional labour based absorption costing system and an activity based costing system. The results for the unit costs are as follows:

























Product




1




2




3



Traditional



£140



£120



£80



ABC



£90



£125



£130



Identify each product as products A, B or C:


Product A is produced in small batches and needs numerous quality inspections


Product B is produced in large batches and needs less inspection than the others


Product C is produced in large batches but needs multiple inspections



Jun 08, 2022
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