Which one of the following statements is false? a. In a manufacturing setting with several different types
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a. In a manufacturing setting with several different types of products, a traditional overhead allocation system can cause a manager to evaluate products incorrectly.
b. In a manufacturing setting with several different types of products, the cost allocations done as part of an ABC system can better reflect economic reality.
c. The gross profit for a specific product or division computed using a traditional overhead allocation system can differ from the gross profit computed using an ABC system.
d. Allocating facility support costs to individual product lines is an essential part of an ABC system.
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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