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The company is exploring the use of activity-based costing technique to allocate the nonmanufacturing overhead. The accounts department has gathered the following estimated monthly information:
The company is exploring the use of activity-based costing technique to allocate the nonmanufacturing overhead. The accounts department has gathered the following estimated monthly information: b. For non-manufacturing cost allocations, there are different methods such as the direct, stepdown and ABC methods mentioned above, explain the rational of the each of the three methods. Which method(s) would you suggest the company to use? Explain your recommendation. The company is exploring the use of activity-based costing technique to allocate the nonmanufacturing overhead. The accounts department has gathered the following estimated monthly information: b. For non-manufacturing cost allocations, there are different methods such as the direct, stepdown and ABC methods mentioned above, explain the rational of the each of the three methods. Which method(s) would you suggest the company to use? Explain your recommendation
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