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For a multi-product business, indirect costs should be apportioned on the basis of which one of the following? (and provide a brief explanation 5 marks)

For a multi-product business, indirect costs should be apportioned on the basis of which one of the following? (and provide a brief explanation 5 marks)

A. The profitability of each type of cost unit

B. Equal shares between each type of cost unit

C. The benefits received by each type of cost unit

D. The quantity produced of each type of cost unit

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