When using allocated costs for decision making, we assume that capacity costs will change in proportion to

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When using allocated costs for decision making, we assume that capacity costs will change in proportion to changes in the cost driver. How can a company validate this assumption when it chooses cost drivers?

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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Question Posted: Feb 20, 2013 09:34 AM

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When using allocated costs for decision making, we assume that capacity costs will change in proportion to

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To validate this assumption the company would have to keep ...View the full answer

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