Reference no: EM132542657

Question 1: Assuming ABC allocated overhead more accurately, which products were incorrectly priced using the traditional costing method? What difficulties might result from incorrectly budgeted products? Hint: Think about how capital resources should be allocated to the most efficient opportunities.

Question 2: What actions might be explored to deal with the mispriced products?

Question 3: Compare assigned costs per product under both methods. Why had activity-based costing changed the total costs assigned to each product?

Question 4: What were two circumstances where traditional and ABC costing would likely yield similar or equal overhead costs?