Answer
Activity-based costing differs from traditional costing systems in a number of ways. In activity-based costing, non-manufacturing as well as manufacturing costs may be assigned to products. And, some manufacturing costs, including the costs of idle capacity, may be excluded from product costs. An activity-based costing system typically includes a number of activity cost pools, each of which has its unique measure of activity. These measures of activity often differ from the allocation bases used in traditional costing systems.
Work Step by Step
As given above
