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With a better understanding of this concept, an individual will become more aware of how to allocate their resources within the company more accurately.
Understanding exactly what activity based costing is, is extremely important. According to the Activity Based Costing Portal, "activity-based costing is a costing model that identifies the cost pools, or activity centers in an organization, and assigns costs to products and services (cost drivers) based on the number of events or transactions involved in the process of providing a product or service." Typically, the costs among the organization are divided and directed to the particular job or product...
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