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Author Question: Lavender Company is a logistics company and has recently implemented ABC system. Using ... (Read 123 times)

Caiter2013

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on: Mar 6, 2021

Question 1

It is important that the product costs reflect as much of the diversity and complexity of the manufacturing process so that ________.
◦ total costs reflect market price
◦ value-added costs can be eliminated
◦ there is high likelihood of cross-subsidizing of product costs
◦ product-pricing errors are minimal

Question 2

Lavender Company is a logistics company and has recently implemented ABC system. Using activity-based information, it decides to reduce the bulkiness of the packages delivered, thereby reducing costs. This suggests that ABC system helps managers in ________ decisions.
◦ pricing
◦ product-mix
◦ process-improvement
◦ product-design
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Caiter2013 on Mar 6, 2021

Kimmy

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Reply #1 on: Mar 6, 2021
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Caiter2013

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

ashely1112

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Reply 3 on: Yesterday
Excellent

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