Managers need allocation bases when they I. Allocate support department costs to operating departments
II. Trace direct costs to products
III. Trace direct labor to products
A) I only
B) I and II only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Allocation bases are used to allocate support department costs to operating departments, not for tracing direct costs or direct labor to products.

Managers Need Allocation Bases When They I