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Assume a manufacturing company is just established. It is a capital-intensive firm and uses machinery (minimum labor use) to produce multiple products. Besides, the industry is fast growing in technologies. The management is trying to design and implement a costing system; Activity-Based Costing (ABC)/Traditional costing. The management is in dilemma to decide the appropriate costing method.
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Question 1: If you are an advisor, what will be your recommendation? Why?
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