Explain the disadvantages that can result when cost-plus prices are based on absorption costs.

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Management Accounting

ISBN: 9781760421144

7th Edition

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

Question Posted: Nov 01, 2017 06:25 AM

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Explain the disadvantages that can result when cost-plus prices are based on absorption costs.

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Three disadvantages of pricing based on absorption cost are as follows 1 Abso...View the full answer

Management Accounting

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