With the growing importance of overhead costs has come a need for greater accuracy in the allocation
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With the growing importance of overhead costs has come a need for greater accuracy in the allocation of those costs.
a. The traditional method ignores volume diversity; it makes no allowance for economies of scale.
b. By limiting a company to a single activity base, the traditional method of cost allocation distorts costs.
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Related Book For 
Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill
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