Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.?
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Week 2 Discussion Question 2
Fundamentals of Product and Service Costing
Complete Question 6-8 and 6-14. Respond to at least two of your classmates' postings.
Question 6-8
“Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.” Do you agree? Why?
Question 6-14
What criteria are important in determining the choice of an allocation base?
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