Which of the Following Statements Is True of the Allocation

question 40

Multiple Choice

Which of the following statements is true of the allocation of fixed support department costs?

• A)It should be allocated only to other support departments of a firm.
• B)It should be allocated only to the user departments making maximum use of support departments.
• C)It should be allocated based on the practical capacity of user departments.
• D)It should be allocated based on the direct labor hours used by support departments.

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