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Activity based costing refines product cost information because the cost system:
a. Emphasizes long-term product analysis (when fixed costs become variable costs).
b. Uses a common departmental or factory wide measure of activity, such as direct labor hours or dollars to distribute manufacturing overhead to products.
c. Causes managers, who are aware of distortions in the traditional cost system, to make intuitive, imprecise adjustments to the traditional cost information without understanding the complete impact.
d. Was designed to value inventory in the aggregate and not relate to product cost information.A is correct. What does this answer choice even mean?
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