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Question 32 25 Lion's, Inc. produces several products. One of their products (Widget-A) costs $270/unit under their traditional cost system using direct labor as a
Question 32 25 Lion's, Inc. produces several products. One of their products (Widget-A) costs $270/unit under their traditional cost system using direct labor as a cost driver. An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of the Widget-A was determined to be $190/unit. Which of the following statements is true regarding this change in the cost: Widget A will now command a higher sales price Widget-A's cost under the new system depends on the adequacy and quality of the estimated sales and sales revenue used by the new system Widget-A will be assigned the same percentage of total overhead Some of Lion's other products may be assigned a larger share of overhead costs . None of the above are true 2.5 pts Question 33
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