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Unformatted text preview: will reflect in the actual cost. 4. Diagram the structure of the existing cost system and explain how cost information is used for decision-making cost control, and performance evaluation purposes. 5. Is the labor-based cost system appropriate for this facility? Should activity-based costing be implemented to analyze product costs? • The labor-based cost system is not appropriate for this facility. It would be more appropriate if activity-based costing were implemented, because the activity-based cost system can be used to assign costs to products and the departments where the work is done. The activity-based estimate will give you a more accurate estimate, because it actually breaks down the costs. 6. Prepare a set of recommendations for changes in the cost system. Describe a general framework for costing products in an automated facility....
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This note was uploaded on 03/16/2012 for the course ACC 571 taught by Professor Wills during the Spring '09 term at Strayer.
- Spring '09