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Q. |
Cooper and Kaplan recommend using which of the following as the basis, or denominator, when developing activity cost pool rates for activity based costing. |
A. | The maximum capacity for each activity. |
B. | The practical capacity for each activity. |
C. | The planned or budgeted for each activity. |
D. | The normal capacity for each activity. |
Answer» B. The practical capacity for each activity. |
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