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Implement an ABC system

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Many companies recognize that their cost systems are inadequate for today's global market. Managers in companies selling multiple products are making important product decisions based on distorted cost information because many cost systems are designed to focus on inventory valuation.
If management should decide to implement an ABC system, what benefits should it expect?

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The solution discusses the implementation of an ABC system.

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If management should decide to implement an ABC system, what benefits should it expect?
Manufacturing overhead costs cannot be directly associated with any particular product as they are common costs. For example Rent can't be associated with a single product as it is an indirect cost. Under this method , the costs are allocated as per the volume or machine hours. As per ehow.com" The method operates under the principle that indirect ...

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