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Answer the following questions using the information below: Products S5 and CP8 each are assigned $50.00 in indirect costs by a traditional costing...

Answer the following questions using the information below:

Products S5 and CP8 each are assigned $50.00 in indirect costs by a traditional costing system. An activity analysis revealed that although production requirements are identical, S5 requires 45 minutes less setup time than CP8.


According to an ABC system, CP8 is ________ under the traditional system.
Answer
undercosted
accurately costed
fairly costed
overcosted

This question was asked on Apr 07, 2010.

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