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Accounting and finance: ABC vs. Traditional costing

Hi all,
I'm currently studying accounting and finance at Brunel university.

"Does the activity-based costing system always provide more accurate product costs than conventional cost systems?"

This question popped up in one of my assignments, although pretty clear in my eyes - I just thought I would pop in and get a second opinion.

I believe that the ABC is better in every way, unless products being manufactured are identical where only volume based cost drivers are used, in which case the traditional would only equal the job done by the ABC.

That's my view on it anyways. Anyone who is familiar with this topic area, would you say that conventional systems in terms of providing accurate product costs are in any way superior to the ABC?

Thanks.

Reply 1

Tyler Bam

Hey, sorry to see you haven't had any replies to your thread yet. :frown:

Are you sure you’ve posted in the right place? Posting in the specific university or course forum should help get more responses. :redface:

If you haven’t already found it, then university connect is a really useful way for finding people at your course/university! You can also find a list of applicant threads and courses here. :h: