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Manufacturing manager states that the machining and packaging activities can be combined because their cost driver usage is correlated. In both cases the usage is
Manufacturing manager states that "the machining and packaging activities can be combined because their cost driver usage is correlated. In both cases the usage is in the ration of 4:1 (500,000:125,000 and 300,000:75,000). If they are combined, four activity based overhead cost pools could be reduced to three". Do you agree with this. Explain
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