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What is the activity-based approach in accounting?


Activity-based accounting (ABA) is a method that allocates overhead costs to specific activities within an organization, providing a clearer understanding of where resources are consumed. This approach identifies the relationship between activities and costs, allowing businesses to pinpoint inefficiencies and improve profitability. By analyzing the costs associated with various activities, managers can make informed decisions on resource allocation and pricing strategies. This methodology contrasts with traditional accounting methods that often allocate costs uniformly. For students seeking assistance in grasping the intricacies of this approach, Activity Based Accounting Assignment Help from BookMyEssay can provide the necessary guidance to excel in their studies.


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