Why do product-costing systems using a single, volume-based cost driver tend to overcost high-volume products? Will there

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Why do product-costing systems using a single, volume-based cost driver tend to overcost high-volume products? Will there be any undesirable strategic effects from such product cost distortion?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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Question Posted: Apr 18, 2013 03:47 AM

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Why do product-costing systems based on a single. Volume based cost driver tend to over cost high-volume products? What undesirable strategic effects can such distortion of product costs have?
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Why do product-costing systems using a single, volume-based cost driver tend to overcost high-volume products? Will there

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Cost management a strategic approach

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