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Accountant A says that Activity-based costing can be used to determine the profitability of each customer. Accountant B says that to determine Allocated costs you
Accountant A says that Activity-based costing can be used to determine the profitability of each customer. Accountant B says that to determine Allocated costs you need to divide the activity usage by the activity rate.
Who is right?
Multiple Choice
- Accountant A is right.
- Accountant B is right.
- Both accountants are right.
- Neither accountant is right.
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