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Smith Company has developed the following information about two products: Approach Traditional ABC Cost Per Unit Cost Per Unit Product 1 Product 2 $5,400 $2,500
Smith Company has developed the following information about two products: Approach Traditional ABC Cost Per Unit Cost Per Unit Product 1 Product 2 $5,400 $2,500 $6,000 $2,400 If managers believe the ABC approach is more accurate to cost products than the traditional approach, then Select one: O A. the ABC approach overestimates the profitability of Product 1 and underestimates the profitability of Product 2 O B. the traditional approach underestimates the profitability of Product 1 and overestimates the profitability of Product 2 O C. the ABC approach underestimates the profitability of Product 1 and overestimates the profitability of Product 2 O D. the traditional approach overestimates the profitability of Product 1 and underestimates the profitability of Product 2
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