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Give a thorough explanation as to why the following conditions that can lead to significant costing differences reported by traditional costing systems and activity costing
Give a thorough explanation as to why the following conditions that can lead to significant costing differences reported by traditional costing systems and activity costing systems are:
- The cost of indirect resources is high relative to direct costs
- There are significant differences in the cost driver rates of differet resources
- There are significant differences in the rate of overhead resource use by the different cost analysis
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