Sales Dollars Is Generally a Poor Base to Use in Allocating

question 7

True/False

Sales dollars is generally a poor base to use in allocating service department costs.

Apply cost allocation principles based on different allocation bases such as square footage, employee numbers, personnel costs, and labor hours.

Evaluate the impact of cost allocation decisions on departmental budgets.

Identify the allocation sequence in the step-down method.

Analyze the effects of cost allocations on operating department expenses.