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When Budgeted Cost-Allocations Rates Are Used ________

Question 2

Multiple Choice

When budgeted cost-allocations rates are used ________.


A) user departments are not informed about the charges until the end of the period which makes decision making during the period difficult
B) user departments can determine the amount of service to request and if allowed, can determine whether to use an internal or external resource
C) user divisions pay for costs that exceed budgeted amounts
D) user divisions pay for inefficiencies of the supplier department

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