Product costing Return to the product cost construction illustration in

 Product costing

Return to the product cost construction illustration in Table 5.1. Numerous assumptions were used in the costing exercise, reflecting period versus product cost distinctions and the LLAs used to allocate product costs among the products. Now find two other sets of assumptions, one set that maximizes the product cost for client B, the municipal client, and another set that minimizes the product cost for the municipal client. Present your calculations in a format comparable to that in Table 5.2. Also, be certain to identify the LLAs and cost allocation in each step of each construction, and provide an adequate defense of your choices. 

 

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