To compute a product's profit or product margin, the product's sales and direct costs are needed in addition to the overhead costs computed in an activity-based costing system.

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Taylor Leicht · Accepted Answer

Final Answer : True, Explanation :  This statement is true. Profit and product margin calculations require information on sales, direct costs, and overhead costs, which are all captured in an activity-based costing system.

To compute a product's profit or product margin, the product's sales and direct costs are needed in addition to the overhead costs computed in an activity-based costing system.

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