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Question 1: Compared to traditional costing methods, which of the following are generally considered disadvantages of Activity Based Costing?
Tick all that apply
Option 1: It is comparatively complex and difficult to understand It integrates both volume and non-volume cost drivers
Option 2: It factors in the cost of set-ups
Option 3: It is relatively expensive to implement It has less allocation bases than traditional costing systems
Option 4: It generates more accurate estimates of product overhead costs
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The controller asks that you the cost, Write a REPORT to the Controller on the findings of the research and recommendation as to which method should be used?
Provide the cost of direct materials, direct labor, and overhead (at 100 percent of direct labor cost) for the three jobs.
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