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Juniper Manufacturing recently went through an activity-based costing analysis. They found that one of their products was losing significant money based on their new costing
Juniper Manufacturing recently went through an activity-based costing analysis. They found that one of their products was losing significant money based on their new costing system, and research indicated that raising the price of the product would dramatically reduce sales. Therefore, they decided to cancel the product line. What effect might that have on other operations or departments?
- A
- :
- Labor pools would need to be rearranged, machining schedules would need to be changed, and storage space would need to be reallocated.
- B
- :
- Accounting would need to change their account titles, human resources would need to hire more workers, and machining schedules would need to be changed.
- C
- :
- Sales people would need to change their sales strategies, product development would need to rearrange design projects, and accounting would need to change their account titles.
- D
- :
- Labor pools would need to be rearranged, product development would need to rearrange design projects, and storage space would need to be reallocated.
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