Activity-based costing (ABC) method : The costing method which allocates overheads to the products based on factory overhead rate for each activity or cost object, according to the cost pooled for the cost drivers (allocation base). To draft : Customer profitability report of Company SE for the year ended December 31, 2016.

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Chapter 26, Problem 26.19EX

(a)

To determine

Activity-based costing (ABC) method: The costing method which allocates overheads to the products based on factory overhead rate for each activity or cost object, according to the cost pooled for the cost drivers (allocation base).

To draft: Customer profitability report of Company SE for the year ended December 31, 2016.

(b)

To determine

To discuss: The inferences from the customer profitability report.

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