Question

If a firm is following the cost leadership strategy, and overhead accounts are complex, then the: Firm should attempt to collect only material and labor costs. Firm should use a process costing system. Firm can use either a project or job costing system. Traditional volume-based job costing will not usually provide the needed cost accuracy. Only recourse is to install a hybrid costing system.

Answer 1

Answer:

Traditional volume-based job costing will not usually provide the needed cost accuracy.

Explanation:

Cost leadership strategy basically means that the company will try to sell its products and services at the lowest possible price. This should increase total sales volume, but in order to be profitable, the production and operational costs must be very low. Actually, the company needs to continuously find ways to keep their costs under control or decrease them if possible.