Activity -based costing plays a more significant role in job costing as compared to process costing as companies using process costing have homogeneous products.

Question

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Activity-based costing (ABC) is more significant in job costing because it allows for a more accurate allocation of overhead costs to specific jobs, which is crucial in environments producing heterogeneous products. In contrast, process costing deals with homogeneous products, making the simpler allocation of costs sufficient and reducing the need for the detailed approach ABC offers.

Activity -Based Costing Plays a More Significant Role in Job