Which one of the following statements is false? a. Facility support costs should not be allocated over

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Which one of the following statements is false?

a. Facility support costs should not be allocated over each division.

b. Facility support costs include direct labor and direct materials.

c. Traditional overhead allocation systems can result in application of manufacturing overhead costs that do not reflect economic reality.

d. The development and operation of an ABC accounting system can cost more than the development and operation of a traditional overhead allocation system.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 27, 2011 11:12 AM

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Which one of the following statements is false? a. Facility support costs should not be allocated over

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The correct answer is B Facility su...View the full answer

Accounting concepts and applications

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