Some cost-allocation methods provide for penalties to managers that over-predict potential usage of a cost driver.
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Q15: Companies must assign all costs for internal
Q16: If the vast majority of costs were
Q17: When allocating fixed costs, a predetermined lump-sum
Q18: Eventually, all direct service department costs will
Q20: Examples of service departments include personnel, legal,
Q22: The use of cost drivers such as
Q23: The preferred cost driver for central services
Q24: The step-down method sequence of allocations begins
Q31: A cost accounting system first assigns costs
Q78: When using the step-down method,once a service
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