The allocation base selected for each department should be the cost driver of the costs in the departmental overhead pool.

Name: The allocation base selected for each department should be the cost driver of the costs in the departmental overhead pool.
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Question

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The allocation base selected should be the cost driver for the departmental overhead pool to ensure accurate allocation of costs to products, services, or activities. This allows for better cost analysis and helps in making informed business decisions.

The Allocation Base Selected for Each Department Should Be the Cost