Question

Identify and comment on the general conditions under which ABC is most likely to operate (18 marks)

Answer 1

Answer: To operate ABC:- The production cost is high. we can Say that cohen production overheads we high and Significant of total cost then ABC is better than toraditional costing System. . And ABC is most suitable for where there is multiple product line of diverstig in perducts. Also ABC is most suitable to giver accurate allocation of overhead on the basis of Cost dommer. So, we can say that the ABC is most suitable in stiff Competition to fire the correct selling price. And where there is non-volime srelated activities are exist then ABC Suitable.