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You have also been asked to give management a recommendation on whether the company should switch from process costing to activity-based costing (ABC) This is
You have also been asked to give management a recommendation on whether the company should switch from process costing to activity-based costing (ABC) This is an exploratory discussion, but management would like to know more about the difference between the two costing systems and if a different costing system might work better for the company IlI. Main Costing Systems Activity-Based Costing vs. Process Costing a) Identify the cost allocation system that would benefit this company most. Justify your response. b) Does this cost allocation system meet management planning and control goals? Explain. c) What are the ethical implications that should be considered with this cost allocation system? d) Describe the ethical implications of direct costs versus indirect costs. What considerations should be made when selecting one of these two
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