One advantage of the ABC system is that it provides more accurate information on the costs to manufacture products, but it does not show up on the financial statements. Explain how this costing information has value if it does not appear on the financial statements. It encompasses the costs that must be incurred so as to produce marketable inventory.<\/p>\n
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However, if management wants to determine the profitability of a specific product or customer, it is necessary to allocate or assign nonmanufacturing costs to the products and\/or customers outside of the financial statements. In the end, management should know whether each product\u2019s selling price is adequate to cover the product\u2019s manufacturing costs, nonmanufacturing costs, and […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"builder_content":"","_links":{"self":[{"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/posts\/3932"}],"collection":[{"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/comments?post=3932"}],"version-history":[{"count":1,"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/posts\/3932\/revisions"}],"predecessor-version":[{"id":3933,"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/posts\/3932\/revisions\/3933"}],"wp:attachment":[{"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/media?parent=3932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/categories?post=3932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/wp-json\/wp\/v2\/tags?post=3932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}