Product Profitability

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Definitions
Traditional Costing System
Traditional Costing Activity-Based Costing Indirect Costs Overhead Allocation Product Profitability Costing Methods Product Costing
Traditional costing systems are methods used to allocate indirect costs (overheads) to products, but they may not offer accurate product cost information due to their arbitrary allocation methods. These systems have strengths such as simplicity and cost-efficiency, but weaknesses include lack of precision in contemporary multiproduct environments.
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