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    Cost Accounting Study Set 2
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    Exam 14: Allocation of Support-Department Costs, Common Costs and Revenues
  5. Question
    If Costs Are Used as a Basis for Pricing,then Charging
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If Costs Are Used as a Basis for Pricing,then Charging

Question 23

Question 23

Multiple Choice

If costs are used as a basis for pricing,then charging user divisions for unused capacity could result in:


A) chaos.
B) confusion.
C) the downward demand spiral.
D) misallocations.

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