MBA 102
Northeast Ohio Medical University
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CHAPTER 9 SYSTEMS DESIGN: ACTIVITY-BASED COSTING AND MANAGEMENT
- Exam (elaborations) • 14 pages • 2024
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I. Questions 
1. The three levels available are: Level 1, in which a company uses a 
plantwide overhead rate; Level 2, in which a company uses departmental 
overhead rates; and Level 3, in which a company uses activity-based 
costing. 
2. New approaches to costing are needed because events of the last few 
decades have made drastic changes in many organizations. Automation 
has greatly decreased the amount of direct labor required to manufacture 
products; product diversity has increased in that...
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