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Topic: Business
Number of pages / Number of words: 10 / 2730
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Another problem was that the bases did not accurately reflect the overhead triggered by either batches or product lines (Johnson, 1988), nor were all the production costs driven by these bases.

Another source of inaccurate costing has been the mis-measurement or exclusion of relevant costs (Weisman, 1991)...


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Since business firms are subject to a multitude of externally mandated accounting and reporting requirements (e.g., pronouncements of the SEC, FASB, GASB, IRS), management accounting has used these same costs to make business decisions. Though these costs satisfy external reporting purposes, they are incomplete for many internal purposes...


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