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Cost allocation: Louis Clark, the new administrator for the surgical clinic, was trying to figure out how to allocate his indirect expenses. His staff were

Cost allocation: Louis Clark, the new administrator for the surgical clinic, was trying to figure out how to allocate his indirect expenses. His staff were complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities expenses based on square footages for each department, to allocate administration expenses based on direct costs, and to allocate laboratory expense based on tests. What would the result be?

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