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Which of the Following Is Not a Step in Allocating

Question 120

Multiple Choice

Which of the following is not a step in allocating indirect costs to cost objects?


A) Multiply the allocation rate by the weight of the cost driver.
B) Trace direct costs to individual cost pools.
C) Compute an allocation rate by dividing the total cost to be allocated by the total cost driver volume.
D) All of the answers are steps in allocating indirect costs.

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