Why Would a Firm Use Activity-Based Costing (ABC) Rather Than

question 1

Essay

Why would a firm use activity-based costing (ABC) rather than traditional methods of cost allocation for overhead?

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Definitions:

Ethics

The branch of philosophy concerned with the intent, means, and consequences of moral behavior; derived from the Greek word ethos, referring to a person’s fundamental orientation toward life or inner character.

Human Concern

A focus on the needs, well-being, and rights of human beings, often driving social initiatives and humanitarian efforts.

U.S. Army

The land warfare service branch of the United States Armed Forces, responsible for land-based military operations.

Instrumental Values

Values or ethical standards that are viewed as a means to an end, guiding how we achieve our goals.