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A Company Is Comparing the Cost of Two Products Determined

Question 124

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A company is comparing the cost of two products determined under a traditional costing system and an activity-based costing system.Let's assume the production process is very lengthy and complicated for both products.The following information is obtained: A company is comparing the cost of two products determined under a traditional costing system and an activity-based costing system.Let's assume the production process is very lengthy and complicated for both products.The following information is obtained:   Based on these computations,what can you conclude? A) Both costing systems provide accurate measures of cost per unit for each product. B) Benchmarking should be used. C) The activity-based costing system is probably more accurate than the other system. D) The traditional costing system is probably more accurate than the other system. Based on these computations,what can you conclude?


A) Both costing systems provide accurate measures of cost per unit for each product.
B) Benchmarking should be used.
C) The activity-based costing system is probably more accurate than the other system.
D) The traditional costing system is probably more accurate than the other system.

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