Criteria used to allocate fixed cost to a department


1. Activity-based pricing:

A) Is used to provide prices per service options

B) uses activity-based costing techniques to determine indirect cost associated with the various service options

C) May reduce cost to suppliers, since customers are selecting services a la carte

D) All of the above

2. Criteria used to allocate fixed cost to a department include

A) Relative benefits

B) Ability to bear

C) Equity

D) All of the above

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Operation Management: Criteria used to allocate fixed cost to a department
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