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A group of doctors operates a joint surgery. They are planning to provide a private clinic where minor surgery can be performed on a day basis (no overnight facilities will be offered). The project will require investment in a new building and operating theatre. Three theatre nurses will be required and three healthcare assistants will be employed. Admissions will be dealt with by the existing medical secretaries. The fees charged will cover costs plus a profit percentage based on cost.
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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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