Cost Accounting
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In traditional cost accounting, all manufacturing costs are assigned to products, while non-manufacturing costs (general administrative costs, sales and marketing costs, etc.) are grouped into overhead, which are then allocated out to products based on either labor hours or machine hours. While this system is simple, it has inherent flaws, most significant of which include the inability to determine the true cost of producing and supporting a product. This inability, in turn, can lead to poor strategic decisions, as some products that appear profitable by traditional cost accounting measures, in fact, are not profitable (and vice versa). To overcome these flaws, many companies are moving to activity-b
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Approximate Word count = 476
Approximate Pages = 2 (250 words per page)
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