The three main guidelines that managers use to refine costing systems are direct-cost tracing,indirect-cost pools,and cost-allocation bases.

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These three guidelines are indeed used by managers to refine costing systems. Direct-cost tracing involves direct measurement of the costs associated with a particular product or service. Indirect-cost pools involve grouping together costs that cannot be directly traced to a specific product or service. Finally, cost-allocation bases are used to allocate indirect costs among the various products or services offered by the company.

The Three Main Guidelines That Managers Use to Refine Costing