Analyze the acceptance of special order


Response to the following questions:

a) Shall the company accept the special order if the traditional costing system is in use? Why?

b) Shall the company accept the special order if activity-based costing system is in use? Why?

c) Does the costing system affect your advice regarding acceptance of the special order? Why?

If possible, please give examples to better understand your answers.

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Cost Accounting: Analyze the acceptance of special order
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