(Answered) Please read rethinking activity-based costingdiscussion

Accounting

Please read Rethinking Activity-Based Costing.

Discussion Based on the article, please provide one argument for each:

i. Under what circumstances do you believe capacity based ABC would be appropriate? [Think of a real world scenario, like a restaurant/manufacturing plant/pharmaceutical unit - whatever you are familiar with] ii. In your view, are there any areas where a time unit capacity based approach wouldn't be appropriate? [think about functions like R&D or academia]

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