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Unformatted text preview: regardless of the costing method used. 5) The differences in the costs for ABC and Normal costing occur for a couple reasons. One reason is that the products are diverse products. They consume resources differently and therefore will have different overhead costs. ABC is also generally more accurate than Normal costing. This is because ABC allocates overhead by activity, with multiple cost drivers rather than just using one cost driver as in Normal costing. By using more cost drivers, ABC is able to estimate with greater precision....
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- Spring '08