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The ashley crites company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit products cost of these parts is
Variable man. cost=12
Fixed man. cost=10
Unit product cost=22
The part can be purchased from an outside supplies at 20 per unit if the part is purchased 60% of the fixed man. Costs can be eliminated the annual impact of the companys net operating income as a result would
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This individual assignment is based on the TerraCycle Inc.
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A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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