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    Managerial Accounting Study Set 8
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    Exam 4: Activity-Based Costing, Lean Operations, and the Costs of Quality
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    Companies That Use ABC Allocate All Costs Including Direct Materials
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Companies That Use ABC Allocate All Costs Including Direct Materials

Question 135

Question 135

True/False

Companies that use ABC allocate all costs including direct materials, direct labor and manufacturing overhead to the product based on an activity cost allocation rate.

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