Cost-accounting applications determine the marginal cost and relative profitability of products and product families.

Question

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Cost-accounting applications are designed to determine the costs associated with producing a product or service, including direct and indirect costs. By analyzing these costs, businesses can determine the marginal cost and relative profitability of different products and product families, which can help them optimize their pricing strategies and make better decisions regarding resource allocation.

Cost-Accounting Applications Determine the Marginal Cost and Relative Profitability of Products