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Adopt activity-based costing

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Central Nursery has decided to adopt has decided to adopt activity-based costing. One likely reason the firm's accountants decided on this approach was to

  • provide a more meaningful way to assign overhead costs to specific products.
  • simplify the process of assigning costs to specific products.
  • base costing on the amount of direct labor used to produce each product.
  • move form a system that focuses on assigning costs to goods and services to a system that assigns costs to activities.

Reference no: EM131039164

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