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    Management Accounting Study Set 1
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    Exam 5: Cost Allocation and Activity-Based Costing Systems
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    The Greatest Virtue of the Direct Method Is
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The Greatest Virtue of the Direct Method Is

Question 106

Question 106

Multiple Choice

The greatest virtue of the direct method is


A) its simplicity.
B) the lack of understandability by managers.
C) the recognition of reciprocal relationships between service departments.
D) its ability to allocate production department costs to service departments.

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