Organizations costing system


Which of the following is not a "red flag" indicating problems with an organization's costing system?

a. Different departments within the company believe that the costs identified for producing goods and providing services are not accurate.

b. Goods and services are complex and require many different processes and inputs.

c. Indirect costs are significant in proportion to direct costs.

d. Standard high-volume goods and services show significant profits.

e. The company loses bids it thought were priced relatively low and wins those it thought were priced relatively high.

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Accounting Basics: Organizations costing system
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