As per the definition of activity-based accounting, it is a collection of methods to provide correct decision-making related to costing products and services in a company. Different entrepreneurs are using these methods to create the desired business.Activity-based costing primarily aims to allocate particular resources to each object.With the help of activity-based costing, companies can ascertain the actual cost incurred while manufacturing a product or a service. The valuable concepts falling under the definition of activity-based accounting make a student study the subject in detail.
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