Activity Based Costing
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1. Identifying Cost Drivers
The following list identifies several potential cost drivers for a manufacturing company that makes eight products. The company uses a just-in-time (JIT) production system so it stores finished product for a very limited time. The eight products vary substantially in size from small (plastic casings for pens) to large (plastic casings for truck instrument panels).
? Number of setups
? Setup time
? Square feet
? Cubic feet
? Cubic feet weeks
For each situation ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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