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"The traditional costing system tends to place too much reliance on unit-level allocation bases which result in over-costing high volume products and...

“The traditional costing system tends to place too much reliance on unit-level allocation bases which result in over-costing high volume products and under-costing low volume products. This can lead to adverse decisions on product costing and pricing. To address this issue, some authors have suggested using the Activity Based Costing method.”




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