Question: Under what conditions are the results from using the direct method of allocation the same as those from using the other two methods? Why?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 9DQ: What are the advantages of the scatterplot method over the high-low method? The high-low method over...
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Question: Under what conditions are the results from using the direct method of allocation the same as those from using the other two methods? Why?

 

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