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Consider an organisation (Easyuniversity) that is currently in the process of deciding how to deal with its indirect costs. It has decided that it does
Consider an organisation (Easyuniversity) that is currently in the process of deciding how to deal with its indirect costs. It has decided that it does not need timely costing information for its cost objects of interest and instead wants to focus on accuracy. Consider the following statements: 1. Appropriate allocation base selected for indirect cost. 2. Budgeted indirect cost amount. 3. Actual indirect cost amount. 4. Budgeted total allocation base quantity. 5. Actual total allocation base quantity. 6. Actual allocation base quantity for cost object of interest. Which of the above is needed to ensure an accurate allocation of Easyuniversity's indirect costs to the final cost object of interest? Statement 1 only Statements 1, 2 and 4 only Statements 1, 3 and 5 only Statements 1, 3 and 6 only Statements 1, 3, 5 and 6 only
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