Regardless of the system used in departmental cost analysis:

Regardless of the system used in departmental cost analysis: Multiple Choice

  • Both direct and indirect costs are allocated.
  • Total departmental costs will always be the same.
  • Direct costs are allocated, indirect costs are not.
  • Indirect costs are allocated, direct costs are not.
  • Neither direct nor indirect costs are allocated.

Answer

Regardless of the system used in departmental cost analysis:

D) Indirect costs are allocated, direct costs are not.

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