Question: 7) In the cause and effect relationship between allocation base and activity cost in indirect costing system, the indirect costs of operating modeling machines _____

7) In the cause and effect relationship between allocation base and activity cost in indirect costing system, the indirect costs of operating modeling machines _____ with molding machine hours.

a) subrtact b) increase c) decrease d) deteriorate e) simplify

8) The strength of the cause and effect relationship between the cost allocation base and the cost pools are the same across cost pools. True/False

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