When determining customer profitability, why is it important to directly trace and allocate customer-related service department costs

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When determining customer profitability, why is it important to directly trace and allocate customer-related service department costs to customers rather than assigning them first to producing departments and then to customers?

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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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Question Posted: Nov 19, 2014 06:52 AM

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When determining customer profitability, why is it important to directly trace and allocate customer-related service department costs

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Introduction to Management Accounting

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