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Thus, in accounting for inventories, a loss shall be recognized whenever the utility of goods is impaired by damage, deterioration, obsolescence, changes in price levels, or other causes. The variable cost per unit is constant, but total variable cost changes in direct proportion to changes in volume. Calculating unit product costs 1 a cost driver is a factor, such as machinehours, beds occupied, computer time, or flighthours, that causes direct costs. Managerial accounting garrison th edition pdf pdf book.

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