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Which of the following statements is (are) true regarding the potential effects of using reported product costs for decision making?(A) Traditional product costing systems (e.g., job and process costing) are designed primarily to accumulate cost information for financial reporting.(B) If a single cost driver is used as the allocation base, applied manufacturing overhead for product costing purposes may lead to inappropriate managerial decisins.
a. Only A is trueb. Both A and B are truec. Neither A nor B is true
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In 1998, Delores made taxable gifts to her son of property with a FMV of $200,000. In the current year when Delores dies, the property is worth $800,000. The amount included in Delores's estate tax base because of the 1998 gift is:
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