Suppose a support activity allocated all of its costs based on actual usage of its services and

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Suppose a support activity allocated all of its costs based on actual usage of its services and use of actual rates. In this scenario, how does the activity volume in one department affect the costs allocated to other activities? Why is such dependence undesirable?

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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