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    Cost Accounting Foundations and Evolutions
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    Exam 4: Activity-Based Management and Activity-Based Costing
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    In Allocating Variable Costs to Products
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In Allocating Variable Costs to Products

Question 98

Question 98

Multiple Choice

In allocating variable costs to products,


A) a volume-based cost driver should be used.
B) direct labor hours should always be used as the allocation base.
C) a company should use the same allocation base that it uses for fixed costs.
D) a company should never use more than one cost driver.

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