Firms are increasingly including full costing, including the use of _________ costing systems, to ensure that all the costs associated with foreign sourcing are fully recognized when they make purchasing decisions.
Fill in the blank(s) with the appropriate word(s).
activity-based
Even on components, firms are increasingly including full costing, including the use of activity-based costing systems, to ensure that all the costs associated with foreign sourcing (transportation, insurance, increased inventory levels to insulate against delays in delivery) are fully recognized when they make purchasing decisions.
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