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1nte Question 20 Which of the following scenarios is most likely to cause ethical problems when using activity-based costing (ABC)? A financial services company calculates
1nte Question 20 Which of the following scenarios is most likely to cause ethical problems when using activity-based costing (ABC)? A financial services company calculates the profitability of every customer based on their investment portfolio and trading behavior with the company. The company then suggests products that the customer might be interested in. A digital retailer calculates customer profitability for groups of users based on their physical characteristics. The digital retailer then provides customization of services based on these appearance characteristics. A retailer analyzes the profitability of each of its stores and each of the products it sells, to better understand store and product profitability, The retailer then uses this information to make decisions about which stores to close, and which products to stop offering. 1 pts Question 21 Which one of the following is a limitation of traditional job-order costing systems which Activity Based Costing (ABC) is trying to address? MOBook Dro. A retailer analyzes the profitability of each of its stores and each of the products it sells, to better understand store and product profitability. The retailer then uses this information to make decisions about which stores to close, and which products to stop offering. Question 21 1 pts Which one of the following is a limitation of traditional job-order costing systems which Activity Based Costing (ABC) is trying to address? A traditional job-order costing system does not conform to GAAP. Traditional job-order costing systems largely rely on volume measures (number of units, machine hours, labor dollars, etc.) to allocate overhead costs to products. Traditional job-order costing systems often allocate Selling, General, and Administrative expenses to products. Substantial resources are required to implement and maintain a traditional job-order costing system. MacBook Pro
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