Problem 1: How does ABC costing differ from traditional allocation methods?
Problem 2: What can an organization learn from the process of applying ABC costing?
Problem 3: Some firms have a lot of fixed costs and few variable costs, while other firms are configured the other way around. What affect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods?
Problem 4: What are some of the characteristics of firms generally benefiting from ABC cost allocations?
Problem 5: Is ABC just a method of allocating overhead costs? If not, discuss.