Why is using sales dollars as an allocation base usually a poor choice for allocating fixed costs

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Why is using sales dollars as an allocation base usually a poor choice for allocating fixed costs to operating departments?

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Managerial Accounting

ISBN: 9781260247787

17th Edition

Authors: Ray Garrison, Eric Noreen, Peter Brewer

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Question Posted: Dec 02, 2020 02:28 AM

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Why is using sales dollars as an allocation base usually a poor choice for allocating fixed costs

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Sales dollars are often a very poor base for allocating costs because sales dolla...View the full answer

Managerial Accounting

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