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Show the activity based costing

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Reference no: EM1314113

Activity Based Costing - Theory

a. Which cost method would you use to manage this business and why? 
b. You are the product manager for product D and are evaluated based on product profitability. Which method would you prefer? 
c. The government wants to buy product C and will pay the business for the cost of the product plus a fixed fee. 
Should you adopt the ABC system or keep the old plant-wide overhead system and why?

Reference no: EM1314113

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