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Which of the following problems arise when costs of depreciation, insurance, or rent are allocated to products to calculate the cost of each unit of
Which of the following problems arise when costs of depreciation, insurance, or rent are allocated to products to calculate the cost of each unit of output?
A) The cost drivers are accurate because they are all grouped together. B) The estimates of the cost driver are more accurate compared to costs. C) The measured observations of cost driver are reliable. D) Fixed costs are erroneously allocated as variable costs. E) The measured observations of related costs are reliable.
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