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Solution to costs1 the step-down method allocates more

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Solution to Costs

1. The step-down method allocates more costs to the producing departments than does the direct method.  Do you agree? Explain.

2. Sometimes direct-labor cost is the best cost-allocation base for overhead application even if wage rates vary within a department. Do you agree? Explain.

3. An increasing number of companies are using variable costing in their corporate annual reports. Do you agree? Explain.

Reference no: EM13361175

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