The Biggest Problem with Allocating Indirect Expenses to Segments Is

question 65

Multiple Choice

The biggest problem with allocating indirect expenses to segments is that:

• A) allocations can be somewhat arbitrary and the results can vary widely.
• B) some departments consume more indirect expenses.
• C) fixed costs are ignored.
• D) it is a time-consuming exercise.

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Definitions:

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A graphical representation indicating that as wages increase, the quantity of labor supplied also increases.