Mba515, Kavita Shukla is the founder of Fresh Paper—a company that sells patented paper sheets that extend the life of perishable foods. Activity-based costing (ABC) is a choice that Fresh Paper could use as a costing method. With the wide choice of different methods facing Fresh Paper to determine its costs of paper sheets, it appears they did not choose ABC costing.
Why do you suppose that Fresh Paper did not choose to use ABC costing for determining costs of its product sheets?
How is ABC costing different from absorption and variable costing?