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    Managerial Accounting Study Set 13
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    Exam 30: Service Department Charges
  5. Question
    An Allocation Basis for Service Department Costs Should Reflect How
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An Allocation Basis for Service Department Costs Should Reflect How

Question 32

Question 32

True/False

An allocation basis for service department costs should reflect how much cost the operating departments can bear. For this reason, the sales of the operating departments is often a good allocation basis.

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