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    Cost Accounting Study Set 2
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    Exam 6: Estimating the Costs of Products and Inventory
  5. Question
    When the Allocated Amount of Indirect Costs Is Less Than
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When the Allocated Amount of Indirect Costs Is Less Than

Question 320

Question 320

Multiple Choice

When the allocated amount of indirect costs is less than the actual amount,indirect costs have been:


A) underapplied.
B) overabsorbed.
C) underallocated.
D) Both underapplied and underallocated are correct.

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