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Allocations of Overheads Should Not Affect a Project's Incremental Cash

Question 3

Multiple Choice

Allocations of overheads should not affect a project's incremental cash flows unless the:


A) project actually changes the total amount of overhead expenses.
B) overhead will not be recovered at the end of the project.
C) overhead is not currently fully allocated to existing projects.
D) accountant is required to allocate costs to this project.

Correct Answer:

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