Multiple Choice
Which of the following statements is true of the allocation of fixed support department costs?
A) It should be allocated only to other support departments of a firm.
B) It should be allocated only to the user departments making maximum use of support departments.
C) It should be allocated based on the practical capacity of user departments.
D) It should be allocated based on the direct labor hours used by support departments.
Correct Answer:
Verified
Correct Answer:
Verified
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