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Altima Company Uses an Overhead Costing System Based on Direct

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Essay

Altima Company uses an overhead costing system based on direct labor hours for its two products X and Y.The company is considering adopting an activity-based costing system,and collects the following information for the month of October.


Definitions:

New Partnerships

Newly formed legal entities created by two or more parties agreeing to do business together for profit.

Dissociated Partner

A partner who has withdrawn from a partnership, thereby ending his or her involvement with the business.

Liability

The legal responsibility or obligation to compensate for harm caused, debts owed, or for fulfilling specific duties.

LLP

Limited Liability Partnership, a legal structure for a business where partners' liabilities are limited to their investment in the partnership.

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