Why do companies use ABC instead of Traditional systems. How are over applied and under applied overhead handled. Use examples.

Traditional Costing vs. Activity Based Costing

Watch the video below and write a three to four paragraphs summarizing the contents of the chapter and video. In your posts you might want to discuss how Overhead is applied in traditional systems, What is ABC as used in Overhead cost calculations and applications.

Why do companies use ABC instead of Traditional systems. How are over applied and under applied overhead handled. Use examples.

Youtube video –

https://www.youtube.com/watch?v=M-uGibLcQ-g&ab_channel=MarkTaylor

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