For each of the types of common cost in the first column, select the most appropriate allocation

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For each of the types of common cost in the first column, select the most appropriate allocation base from the second column:

Common Cost                                    Allocation Base

Building Utilities ……………….         Value of Equipment and Inventories

Payroll Accounting ……………..      Number of Units Produced

Insurance ……………………….           Number of Employees

Equipment Repair ………………      Space Occupied

Quality Control Inspection ……..  Number of Service Calls

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Managerial Accounting An Introduction to Concepts Methods and Uses

ISBN: 978-0324639766

10th Edition

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil

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