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1A. What is the difference between operating departments and service departments? 1B. What is the difference between direct and indirect expenses? 1C. Suggest a reasonable

1A. What is the difference between operating departments and service departments?

1B. What is the difference between direct and indirect expenses?

1C. Suggest a reasonable basis for allocating each of the following indirect expenses to departments: (a) rent, (b) advertising, (C) property taxes on equipment, and (d) electricity for lighting.

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