how do cost-benefit considerations affect choices by a company about the allocation of indirect costs to products, services, or customers? A. by calssifying immaterial costs as direct costs to products, services, or customers at high cost B. by using a large number of indirect cost pools to create more heterogeneous cost pools at low cost C. by using readily availble allocation bases, even if more appropriate ones bould be developed at high cost D. by neglecting cost considerations and focusing solely on the benefits of allocation indirect costs E. all of the above
how do cost-benefit considerations affect choices by a company about the allocation of indirect costs to products, services, or customers? A. by calssifying immaterial costs as direct costs to products, services, or customers at high cost B. by using a large number of indirect cost pools to create more heterogeneous cost pools at low cost C. by using readily availble allocation bases, even if more appropriate ones bould be developed at high cost D. by neglecting cost considerations and focusing solely on the benefits of allocation indirect costs E. all of the above
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...
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how do cost-benefit considerations affect choices by a company about the allocation of indirect costs to products, services, or customers?
A. by calssifying immaterial costs as direct costs to products, services, or customers at high cost
B. by using a large number of indirect cost pools to create more heterogeneous cost pools at low cost
C. by using readily availble allocation bases, even if more appropriate ones bould be developed at high cost
D. by neglecting cost considerations and focusing solely on the benefits of allocation indirect costs
E. all of the above
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