Week 2 Discussion Question 2

Fundamentals of Product and Service Costing

Complete Question 6-8 and 6-14. Respond to at least two of your classmates' postings.

Question 6-8 

“Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.” Do you agree? Why? 

Question 6-14 

What criteria are important in determining the choice of an allocation base? 

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