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    Cost Accounting
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    Exam 15: Allocation of Support-Department Costs, Common Costs, and Revenues
  5. Question
    If the Incremental Users Are Newly Formed Companies or Subunits
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If the Incremental Users Are Newly Formed Companies or Subunits

Question 14

Question 14

True/False

If the incremental users are newly formed companies or subunits, the incremental method may decrease their chances for short-run survival by assigning them a high allocation of the common costs.

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