Decision 4 choosing allocation bases for service

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Unformatted text preview: e cost for a given cost object would then depend on (a) the production center or centers in which a product was produced or a customer received services, (b) the number of units of activity that a product received in each (such as hours of labor) or the number of units of service that a customer received in each, and (c) the cost per unit of activity. Additionally, the cost per unit of activity in each production center would depend, in part, on that center's “fair share” of the organization's service center costs. ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Problem: In addition to the cost center decision described in the last example, Lawncare I...
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