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The Major Disadvantage of the Account Classification Method Is

Question 28

Multiple Choice

The major disadvantage of the account classification method is


A) While some cost items will exactly correspond to a fixed or variable cost, other cost items will not.
B) The difficulty associated with implementing it.
C) Small companies may have an expansive account list making the task hard.
D) Incorrectly classifying costs could lead to minor errors in cost estimates.

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