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There are three reasons why the reported product

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There are three reasons why the reported product margins for the two costing systems differ from one another.
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7-38 ABC Limitations Substantial resources required to implement and maintain. Resistance to unfamiliar numbers and reports. Desire to fully allocate all costs to products. Potential misinterpretation of unfamiliar numbers. Does not conform to GAAP. Two costing systems may be needed.
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