Regardless of method adopted the first step in allocating support department costs to operating departments is to choose the allocation basis.
Correct Answer:
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Q37: Indirect costs are allocated to cost objects
Q38: To be consistent in the cost assignment
Q39: Cost drivers can be volume drivers or
Q40: Organisations use budgeted costs so they can
Q41: The allocation of indirect costs to cost
Q43: Once the total cost pool for each
Q44: There are two support departments, Accounting and
Q45: A cost object cannot be:
A) a geographic
Q46: The allocation order of support department costs
Q47: It is not important to use the
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