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    Business
  3. Study Set
    Cost Accounting
  4. Exam
    Exam 15: Allocation of Support-Department Costs, Common Costs, and Revenues
  5. Question
    Why Do Organizations Use Budgeted Rates Instead of Actual Rates
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Why Do Organizations Use Budgeted Rates Instead of Actual Rates

Question 112

Question 112

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Why do organizations use budgeted rates instead of actual rates to allocate the costs of support departments to each other and to user departments and divisions? Explain.

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The method of using actual rates based o...

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