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In ABC it is assumed that it is activities that drive costs, rather than cost objects such as inventory O O True False Fine Pottery
In ABC it is assumed that it is activities that drive costs, rather than cost objects such as inventory O O True False Fine Pottery Processors manufactures two products, platters and tureens, from a joint process. Platters are allocated $5,000 of the total joint costs of $25,000. There are 1,500 platters produced and 1,500 tureens produced each year. Platters can be sold at the split-off point for $12 per unit, or they can be processed further into a deluxe platter for additional processing costs of $5,000 and sold for $16 for each deluxe platter. If the platters are processed further and made into deluxe platters, the effect on operating income would be O A. $18,000 net increase in operating income. OB. $1,000 net decrease in operating income. OC. $1,000 net increase in operating income. OD. $18,000 net decrease in operating income
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