Question: True / False 1 . Cost allocation is equally important in cash and accrual systems. 2 . You must always start a cost allocation with
TrueFalse
Cost allocation is equally important in cash and accrual systems.
You must always start a cost allocation with administrative costs.
Cost allocation is a way to distribute costs from support
departments to revenueproducing departments.
The order in which the services are allocated makes a difference to the final, allinclusive costs of each particular revenue department or cost object. True
In the stepdown costallocation method, the order in which support areas are allocated can affect the organizations total costs.
In the stepdown costallocation method, the order in which support areas are allocated can affect a revenue departments fully allocated costs.
Fixed costs per unit change with respect to volume.
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