ocr: Data Int the guided example we looked at how the profit measured by our manufacturing company was dependent upon the costing system employed. The same pusiness is currently evaluating proposals to radically increase its operating capacity via investment in a new state of the art production line. The Board of Directors has asked you, as the management accountant, toe evaluate the proposals using both absorption and variable costing cechniques. The tollowing revised cost and revenue data has been torecast for the calendar year 1996 when the business expects to make the new production line operat ...
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