Wilke Realty separates its activities into two operating divisions: Rentals and Sales. In March 2013, the firm
Question:
a. Allocate the total promotion cost to the two divisions using change in revenue.
b. Allocate the total promotion cost to the two divisions using change in profit before joint cost allocation.
c. Which of the two approaches is more appropriate?Explain.
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111971724
9th edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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