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    Business
  3. Study Set
    Cost Accounting Foundations and Evolutions
  4. Exam
    Exam 4: Activity-Based Management and Activity-Based Costing
  5. Question
    In Allocating Fixed Costs to Products in Activity-Based Costing
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In Allocating Fixed Costs to Products in Activity-Based Costing

Question 3

Question 3

Multiple Choice

In allocating fixed costs to products in activity-based costing,


A) direct labor hours should always be used as the allocation base.
B) a company should use the same allocation base that it uses for variable costs.
C) a cost driver that is not volume-related should be used.
D) machine hours should always be useD.

Correct Answer:

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