Costing & Pricing Costing Decisions Research Paper

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Joint costing systems should bear in mind the legal constraints on the use of such systems, and should provide accurate information to managers in order to be most useful in the managerial accounting context.

Firms need to remain competitive, which indicates that the market will set prices to some degree. This implies that firms can make better decisions with respect to what projects/products they wish to pursue by understanding the cost structure of the product.

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If the product is not viable at the cost at which it can be produced, then the firm can improve profitability by dumping the product.

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