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If Only One or Two Overhead Cost Pools Are Used

Question 6

Multiple Choice

If only one or two overhead cost pools are used,


A) it will be easy to determine which products or services are creating the most costs.
B) overhead created by a specific product will be assigned to all products.
C) the reduction in cost accumulation and allocation time will raise company profits.
D) allocations should be made using only unit-based cost drivers.

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