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Most companies allocate facility-level activity costs directly to products for decision-making purposes.True or false?

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User Rodgobbi
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Answer:

False

Step-by-step explanation:

Facility-level costs are being the type of activity based cost activities and it simply sustains a facility’s general manufacturing process. We can say some samples about this type of costs:

1) The costs about depreciation or rent of a factory building

2) The costs about salary of a plant manager

3) The costs about insurance, taxes, etc.

4) The costs about training

As you see all about this cost mentioned only in manufacturing processes not in decision making.

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User Luzmarina
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