The allocation of indirect costs to cost objects is likely to be inaccurate if the allocation base used is not a cost driver.
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Q36: To develop a cost allocation formula entities
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
Q42: Regardless of method adopted the first step
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
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