Attached. Please let me know if you have any questions or need revisions.1Activity Based Costing systemNameDateInstitutionInstruction2Q1 What process is used to assign costs in an ABC system? Provide a numerical example.As a result of advanced manufacturing technology, absorption costing methods have beenabandoned by the organization. Traditional absorption costing methods usually allocateenormous proportions of overheads to high-volume products and tiny overheads to low-volumeproducts. As a result of this, costing methods have been developed. Activity-Based Costing isamong the plans.The process followed during the ABC system is as follows (Robinson-Backmon, 2011).Step 1: Identify the organization’s main activities, for example, manufacturing, retail.Step 2: Identify the cost drivers like Variable cost, indirect or direct costs.Step 3: You need take and note down costs associated with every process into single cost …
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