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Which Is Not a Reason for Allocating Internal Costs to Cost

Question 8

Multiple Choice

Which is not a reason for allocating internal costs to cost objects?


A) Managers should be charged for benefits received by departments (or products) under their control
B) External financial reporting rules require allocation of factory overhead
C) To determine the selling price of products
D) To determine the amount to be reimbursed under a cost-reimbursement contract
E) All of the above are reasons for allocating internal costs to cost objects

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