Prime indicators of problems with a conventional costing system include company profits being eroded and production managers not being able to make sense of product costs.

Question

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Conventional costing systems can lead to distorted product costs and do not reflect the actual costs of production. This can result in reduced profits for the company and confusion for production managers who are unable to make informed decisions without accurate cost information. Therefore, prime indicators of problems with a conventional costing system include these issues.

Prime Indicators of Problems with a Conventional Costing System Include