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Define Activities based costing by horngren
According to horngren
" ABC is a system that focuses on activities as fundamental cost object and utilizes cost of these activities as building blocks op compiling the costs of other cost objects."
Activity based costing is an accounting methodology that assigns costs to activities rather than products or services. This enables resources and overhead costs to be more accurately assigned to products and services that consume them.
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X ltd. has a current ratio of 4.5:1 and acid test ratio of 3:1. If its inventory is Rs. 24000, find out its current liabilities.
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