Question: Management Accounting Question a. Why is direct labor a poor base for allocating overhead in many companies? b. Which type of overhead cost is excluded

Management Accounting

Question

a. Why is direct labor a poor base for allocating overhead in many companies?

b. Which type of overhead cost is excluded from the activity-based costing approach?

c. How can the activity rates (that is, cost per activity) for the various activities be used to target process improvements?

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