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What are the advantages of activity-based costing

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Reference no: EM131700241

Question 1 -

a- What are the advantages of Activity-Based Costing (ABC)?

b- What is the challenge of this system and how we can resolve it?

Question 2 - Suppose:

  • Selling price 150 S.R per unit
  • Variable costs 90 S.R per unit
  • Fixed costs 600,000 S.R (TOTAL)

Required:

1. What is the beak-even-point?

2. What is the selling price, if break - even point is 12000 units?

Reference no: EM131700241

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