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For companies that manufacture several products that use different proportions of manufacturing overhead resources, why does the use of activity-based costing provide more reliable product
For companies that manufacture several products that use different proportions of manufacturing overhead resources, why does the use of activity-based costing provide more reliable product cost information for management decision-making than would traditional costing system that uses a single cost driver to allocate all manufacturing overhead activities/resources? Write the response professionally as if it were responding to the president of your company.
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