Companies can choose from different costing methods: process/product costing and activity-based costing. Think about a company you know and answer the following:

  • What are the differences between the two costing methods, and how do these apply to your company?
  • What are some ABC cost drivers the company might use?
  • How could the costs differ if one method is chosen over the other?
  • Which method would you recommend for your company, and why?

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