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What Are the Main Advantages of Volume-Based Allocation Methods Compared

Question 5

Multiple Choice

What are the main advantages of volume-based allocation methods compared to activity-based costing?


A) Volume-based methods are easier to use and less costly to implement and maintain.
B) Volume-based methods are more accurate and allowed by GAAP.
C) Volume-based methods are less accurate and easier to use.
D) Volume-based methods are harder to use and more costly to implement and maintain.
E) There are no advantages to using volume-based methods.

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