Typically revealed by switching to activity-based costing

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Reference no: EM131886419

1. Which of the following problems of traditional costing approaches are typically revealed by switching to Activity-Based Costing?

Over-costing of low-volume, high-complexity products

Under-costing of high-volume, low-complexity products

Over-producing unprofitable products

Under-producing profitable products

C and D only

2. Catano Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month. If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050, then in August the Accounts Payable ending balance for raw materials purchases is closest to:

$265,150

$153,930

$166,830

$111,220

Reference no: EM131886419

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