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Sagot :
(d) Managers don't understand costs and profits is a sign that a product cost system is not working properly.
A product cost system can be described as the assessment and generation of production costs and the profits that are made from a product.
If a manager of a place does not have effective knowledge about the production cost and profit, then for such an organization the production cost system will not work properly. The manager will not effectively be able to evaluate where to spend the revenue and how to generate a reasonable profit from it. In such a case, the company might have to suffer from huge losses.
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