The total annual production cost of a manufacturing company that produces three different USB devices is $10,000,000.

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The total annual production cost of a manufacturing company that produces three different USB devices is $10,000,000. The manager of the company states that the contribution margins of all three products guarantee and justify their productions and, therefore, there is no need to adopt ABC as the total manufacturing costs of the company would remain the same if the company did adopt ABC. How can you convince the manager to change his mind?

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Horngrens Cost Accounting A Managerial Emphasis

ISBN: 9780135628478

17th Edition

Authors: Srikant M. Datar, Madhav V. Rajan

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