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A Major Advantage of Activity-Based Costing (ABC) Is That It

question 21

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A major advantage of activity-based costing (ABC) is that it reduces unit cost distortions arising from overhead allocations that often occur using traditional cost accounting systems.


Definitions:

Years of Education

A demographic measure referring to the total number of years that an individual has received formal education.

Income

The financial gain received by an individual or entity, typically measured over a certain period of time, from work or investments.

Graphical Excellence

The effective communication of complex quantitative ideas through clear, precise, and efficient graphics.

Ideas

Concepts, thoughts, or suggestions.

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