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Product unit costs are estimated for two purpose. Managerial decision making and external reporting. The costs for managerial decision making include the costs which increase when an extra unit is produced. Material costs is of great importance for this purpose.
the costs for external reporting include the labor costs and overhead costs ranging from depreciation and taxes to different kinds of supplies.
the costs for external reporting include the labor costs and overhead costs ranging from depreciation and taxes to different kinds of supplies.
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