Higher-level performance reports should allocate both traceable and common fixed costs to lower departments.

Name: Higher-level performance reports should allocate both traceable and common fixed costs to lower departments.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

"…for proper decision-making purposes, only those costs that are directly traceable...to each department should be assigned to that department. Common costs would not be assigned for purposes of performance evaluation."

Higher-Level Performance Reports Should Allocate Both Traceable and Common Fixed