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When allocating overhead in the service sector, charging individual jobs based on full capacity utilization may: a. Be more logical and prevent underutilization of services

When allocating overhead in the service sector, charging individual jobs based on full capacity utilization may:

a. Be more logical and prevent underutilization of services

b. Generate fewer calls and reduce the financial viability of the organization

c. Result in considerable overapplied overhead

d. Lead to dysfunctional decisions and high costing errors

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