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If a Department Identifies More Than One Cost Driver for Overhead

Question 113

Multiple Choice

If a department identifies more than one cost driver for overhead costs, the department ideally should _____.


A) put 80% of the cost into one pool and 20% into second pool
B) select a single cost driver
C) allocate 80% of the costs with 20% of the drivers
D) create as many cost pools as there are cost drivers

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