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When a Support Department's Activities Are Not Fully Consumed by Other

Question 1

Multiple Choice

When a support department's activities are not fully consumed by other departments (that is, the support department self-consumes some costs) :


A) We ignore such self-consumption.
B) Not allocating the self-consumption negatively affects the accuracy of allocations.
C) We must allocate the self-consumption costs to line activities.
D) A and B only.
E) None of the above.

Correct Answer:

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