Explain the Difference Between Activity Based Costing (ABC) and Conventional

question 27

Essay

Explain the difference between activity based costing (ABC) and conventional costing methods.
ABC costing requires process transparency and detailed information on products, customers, activities, and resource costs. Conventional costing usually does not provide the true allocated costs to directly related support functions, equipment, facilities, and people.
Fill in the Blank(s) (Blank Identified in RED)

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Definitions:

Selective Optimization

A strategy that involves focusing on and optimizing resources toward the most valued activities to maximize functioning.

Compensation

A system of rewards, often monetary, given for services rendered or as a recompense for injury or loss, or a psychological mechanism where perceived weaknesses are countered by strengths.

Relocate

The act of moving from one place to another, which can be applied to both individuals and institutions.

Residences For The Elderly

Living facilities specifically designed to cater to the needs of senior citizens, offering various levels of care and amenities.