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QUESTION

3-Questions

Please answer the following 200 words minimum

5.      Critics of absorption cost have increasingly emphasized its potential for leading to undesirable incentives for managers. Give at least two examples and explain.

6.      What are three primary uses of a standard cost system? In a business that routinely manufactures the same products or performs the same services, why are standards so helpful?

7.      Discuss how the planning of fixed overhead costs differs from the planning of variable overhead costs? Provide reasons to support you opinion.

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