=+4 Assume CPAL Ltd has several product lines, of which Mini is only one. The manager for
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=+4 Assume CPAL Ltd has several product lines, of which Mini is only one. The manager for the Mini product line, James Candon, is evaluated on the basis of manufacturing and customer sales and service costs, but not advertising costs. James wants to increase capacity for customers because he thinks the market is growing, and this will cost an additional $1098. However, he is not going to use this extra capacity immediately, so he classifies it as an advertising cost rather than customer sales and service cost.
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Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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