Multiple Choice
What is the 80-20 rule used when selecting cost allocation bases for the budgeted overhead rate?
A) 80% of the cost-allocation bases drive 20% of the overhead costs
B) 20% of the cost-allocation bases drive 80% of the overhead costs
C) 80% of the overhead rate is determined by 20% of the cost-allocation bases
D) 20% of the overhead rate is determined by 80% of the cost-allocation bases
Correct Answer:
Verified
Correct Answer:
Verified
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