The allocation of overheads in the construction industry in india traditional costing or activity based costing?
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Recent literature suggests that many companies are moving away from traditional costing (TC) systems in favour of activity based costing (ABC) systems which provide more accurate cost information among other benefits. The literature also reports low assimilation and abandonment of the ABC system by the companies which had adopted it owing to several weaknesses of the ABC system. These conflicting findings of high adoption of the ABC system on one hand and low assimilation on the other hand, formed the basis of this paper. The paper sought to clarify the applicability of the ABC system to the construction industry in Southern Africa. It tests whether or not the ABC system is a viable alternative to the TC systems.
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Recent literature suggests that many companies are moving away from traditional costing (TC) systems in favour of activity based costing (ABC) systems which provide more accurate cost information among other benefits. The literature also reports low assimilation and abandonment of the ABC system by the companies which had adopted it owing to several weaknesses of the ABC system. These conflicting findings of high adoption of the ABC system on one hand and low assimilation on the other hand, formed the basis of this paper. The paper sought to clarify the applicability of the ABC system to the construction industry in Southern Africa. It tests whether or not the ABC system is a viable alternative to the TC systems.
hope this answer helps you
please mark it as brainliest
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