Volume-based cost accounting systems often do not provide


Volume-based cost accounting systems often do not provide sufficiently accurate product costing because they:

A. Use only volume-based cost drivers.

B. Fail to recognize the impact of overhead in product cost.

C. Often do not reflect changes in major cost categories caused by plant automation.

D. Too often use an allocation base that does not have a cause-effect relationship to resource usage.

E. Product costs involve both fixed and variable costs.

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Financial Accounting: Volume-based cost accounting systems often do not provide
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