ACCT3105 - Kanthal Case Study
Question 1:
Why have selling administrative costs not traditionally been traced to individual products and customers?
Answer 1:
Under the old costs system, Kanthal management felt that selling and administration costs were fixed costs, and as a result they could not be changed, manipulated, or utilized to influence growth or profitability. Traditionally, Kanthal had considered S"E expenditures to be period costs and were expensed in that manner rather than allocating…
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