Q7-1. What is activity-based costing, and why is this approach to cost assignments superior to the traditional method of using a plantwide overhead

Q7-1. What is activity-based costing, and why is this approach to cost assignments superior to the traditional method of using a plantwide overhead cost rate? Does activity-based costing necessarily result in lower product costs? Defend your answer.300 words give or take

Activity based costing (ABC) is a model that identifies activities and allocate the cost to all product and services as per actual usage. It is assignment of overhead into direct cost. According to...