Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



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solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
Multiproduct businesses
The main issue is that there has to beat least two products in the business, otherwise there are no costs to apportion between products. Fora single product company, all costs of the business are identifiable with the product and product probability is directly related to the profitability of the business as a whole. Other advantages of ABC in multiproduct business relate to the accurate valuation of stock and facilitating the effective management of stock levels with multiple products. Allied to this is that there is reduced cross-subsidisation of products with costs accurately identified with products, it becomes easier for management to discern which products are profitable against those that are not.

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