Wrong allocation of common costs lead to A. Inaccurate estimation of cost of products or services B. Under utilization of capacity C. Lower profit margin D. All of the above are correct
Wrong allocation of common costs lead to A. Inaccurate estimation of cost of products or services B. Under utilization of capacity C. Lower profit margin D. All of the above are correct
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...
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Wrong allocation of common costs lead to
A. Inaccurate estimation of cost of products or services
B. Under utilization of capacity
C. Lower profit margin
D. All of the above are correct
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