The traditional costing system tends to place too much, Ask an Expert

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The traditional costing system tends to place too much reliance on unit-level allocation bases which result in over-costing high volume products and under-costing low volume products. This can lead to adverse decisions on product costing and pricing. To address this issue, some authors have suggested using the Activity Based Costing method.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M954130

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