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The Main Advantage of Using Budgeted Cost Rates Rather Than

Question 47

Multiple Choice

The main advantage of using budgeted cost rates rather than actual cost rates is


A) budgeted costs allow managers to have cost information on a timely basis.
B) budgeted costs may be subject to short-run fluctuations.
C) budgeted indirect-cost rates are known prior to the inception of a new job.
D) actual indirect-cost rates are affected by work done on other jobs.
E) budgeted rates are just as accurate and require less effort.

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