Question: Given your answer in requirement 2, what advantage does Family Mart gain by using an activity-based approach to budgeting over, say, allocating indirect costs to
Given your answer in requirement 2, what advantage does Family Mart gain by using an activity-based approach to budgeting over, say, allocating indirect costs to products based on cost of goods sold? An activity-based approach recognizes how different products require different mixes of support activities. the same support activity. By recognizing this, Family Mart managers are better able to budget for different unit sales levels and different mixes different unit sales levels with the same mix equal unit sales levels and different mixes equal unit sales levels with the same mix of individual product-line items sold
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