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In: Accounting

If you were in charge of a product engineering department in a mid-sized Japanese company producing...

If you were in charge of a product engineering department in a mid-sized Japanese company producing small motorcycles, what use might you make of cost accounting information for the various motorcycles now in production?

If a company’s cost accounting system leans in the direction of including ambiguous costs as period costs rather than product costs, how will the company’s reported profits be affected during periods when the firm’s inventory of manufactured finished goods increases? Why?

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