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A Manufacturer Utilizes Three Separate Indirect Cost Pools

Question 120

Multiple Choice

A manufacturer utilizes three separate indirect cost pools. Which of the following is true?


A) Each indirect cost pool utilizes a separate cost-allocation rate
B) Each indirect cost pool is a subset of total direct costs
C) Each indirect cost pool relates to multiple cost centers
D) Each indirect cost pool utilizes the same cost-allocation rate for all costs incurred

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