Lehigh Steel Case

2. Standard costing applies costs equally across products regardless of the volume of use (in the case of manufacturing costs) or the efficiency of the production associated with individual products. Activity based costing allocates costs based on the proportion of activity that any one product is responsible for in the production process (such as the percentage of time a melting machine is used). Theory of constraints takes into account that there are different levels of efficiency associated with different products,

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