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Ideally,if a Department Has More Than One Cost-Allocation Base for Overhead

Question 121

Multiple Choice

Ideally,if a department has more than one cost-allocation base for overhead costs,it should ________.


A) use only one cost-allocation base with the highest amount of overhead costs
B) use only two cost-allocation bases with the highest amount of overhead costs
C) accumulate a separate cost pool for each cost-allocation base and put the overhead costs into the appropriate cost pool
D) determine the budgeted overhead rate using the budgeted overhead costs and the budgeted amount of only one cost driver

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