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46) How is activity-based costing useful for pricing decisions? A. It helps managers to manage...

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Accounting

46) How is activity-based costing useful for pricing decisions?

A. It helps managers to manage costs during value engineering by identifying the cost impact of eliminating, reducing, or changing various activities.

B. It gives managers more accurate product-cost information for making pricing decisions.

C. It allows managers to focus on locked-in costs, that, if eliminated would not reduce the actual value or utility customers gain from using the product or service.

D. Both A and B are correct.

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