What points should you consider before starting the design
Question:
1. When designing a cost system, what points should you consider before starting the design?
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Why is actual costing rarely used for product costing?
Why is a process costing system not appropriate for companies that produce items that are distinctly different from one another?
Why are the accounting requirements for job-order costing more demanding than those for process costing?
Why are actual overhead rates seldom used in practice?
What type of industry is likely to use a process cost system? Give some examples.
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