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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 ...