Cost Distortion; Continuation of Problem 5-60
Refer to the product costs developed in requirement (5) of Problem 5-60. Prepare a table showing how Gigabyte’ s traditional. volume-based product-costing system distorts the product costs of gismos, thingamajigs, and whatchamacallits, (You may wish to refer to Exhibit 5-10 for guidance. Because of rounding in the calculation of the product costs, there will be a small rounding error in this cost distortion analysis as well.)
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