[Sharonlee]

Isn’t that design cost more likely to be included as part of the costing in life cycle costing?

[Sharonlee]

How does it happen in real life? Do you mean that we might not trace it so precisely using cost driver but just spread it randomly like a percentage of prime cost?

[Sharonlee]

Yes, I have watched them but no emphasis put on this.

Since Marginal costing also using a predetermined rate, why will it not have the problem of over/under-absorbed?

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