Regardless of the System Used in Departmental Cost Analysis

question 6

Multiple Choice

Regardless of the system used in departmental cost analysis:

• A) Direct costs are allocated, indirect costs are not.
• B) Indirect costs are allocated, direct costs are not.
• C) Neither direct nor indirect costs are allocated.
• D) Total departmental costs will always be the same.
• E) Both direct and indirect costs are allocated.

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