Suppose you are the managing partner of an audit firm. In a recent meeting on the annual

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Suppose you are the managing partner of an audit firm. In a recent meeting on the annual budget and cost allocation policy of your firm, one of the senior managers has advocated that while making quotations for a client-order, the firm should trace only the professional hours and allocate all other costs (materials and supplies as well as overhead costs) as a percentage of the professional compensation cost. Do you agree with him?

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Introduction To Management Accounting

ISBN: 9781292412566

17th Edition, Global Edition

Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler

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