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    Business
  3. Study Set
    Cost Accounting
  4. Exam
    Exam 8: Flexible Budgets, Overhead Cost Variances, and Management Control
  5. Question
    Prorated Allocation of Production-Volume Variance Results in a Higher Operating
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Prorated Allocation of Production-Volume Variance Results in a Higher Operating

Question 145

Question 145

True/False

Prorated allocation of production-volume variance results in a higher operating income for current year than if the entire favorable production-volume variance were credited to Cost of Goods Sold.

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