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Using Activity-Cost Rates Rather Than Department Indirect-Cost Rates to Allocate

Question 212

Multiple Choice

Using activity-cost rates rather than department indirect-cost rates to allocate costs results in different product costs when:


A) different products use different resources in the same proportion.
B) there are several homogeneous cost pools.
C) different activities have the same cost-allocation base.
D) a single activity accounts for a sizeable portion of department costs.

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