A Company Would Use Multiple Cost-Allocation Bases

question 217

Multiple Choice

A company would use multiple cost-allocation bases:

• A)because there is more than one way to allocate overhead.
• B)because this is a simpler approach than using one cost-allocation base.
• C)if managers believe that using multiple cost-allocation bases is the only acceptable method.
• D)if managers believed the benefits exceeded the additional costs of that costing system.

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Definitions:

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