John, a cost accountant, prepares a product profitability report for Jane, the

(TCO 5) The following information relates to a product produced by Bayfield
February 11, 2020
Why might two companies in the same industry have different cost systems?
February 12, 2020

John, a cost accountant, prepares a product profitability report for Jane, the

production manager. According to John’s report, almost one-third of the company’s products are not profitable. He tells Jane that these unprofitable products should be dropped to improve the overall company profits. Should Jane agree with this approach? Why?

 
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