Question
Some managers believe that allocated costs are arbitrary and therefore not relevant, and that only costs that are direct costs should be reported. Explain why
Some managers believe that allocated costs are arbitrary and therefore not relevant, and that only costs that are direct costs should be reported.
Explain why you believe all costs are relevant and why allocation of costs is necessary for accurate financial reporting.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
