Smaller cost distortions occur when the traditional systems’ single indirect-cost rate and the activity-cost-driver rates: a. use the same total costs for computations b. are similar in proportion to each other c. are more different than alike d. use the same cost driver units
Dec 15, 2017 · One department indirect-cost rate is sufficient when:a. activities relate to more than one level of the cost hierarchy b. product costs are significantly cross-subsidized c. the same allocation base is appropriate for all departmental activities d. it is a service department Answer: c Difficulty: 2 Objective: 7. c.
3) One department indirect-cost rate is sufficient when: A) activities relate to more than one level of the cost hierarchy B) product costs are significantly cross-subsidized C) the same allocation base is appropriate for all departmental activities D) it is a service department Answer: C
Question 5 (1 point) Saved One department indirect-cost rate is sufficient when: Question 5 options: 1) the same allocation base is appropriate for all departmental activities. 2) product costs are significantly cross-subsidised. 3) it is a service department.
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