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Berkeley Inc. produces multiple products and incurs significant amounts indirect costs.  Which of the following options would likely help Berkeley improve the accuracy of its indirect cost allocation to its different products? Use a single allocation base to allocate the company's indirect costs instead of having multiple allocation bases Ensure each indirect cost pool contains cost items that are driven by the same cost driver Use actual costing instead of normal costing Group of answer choices Statement 1 only Statement 2 only Statement 3 only Statement 1, 2 and 3   None of above statements

Berkeley Inc. produces multiple products and incurs significant amounts indirect costs.  Which of the following options would likely help Berkeley improve the accuracy of its indirect cost allocation to its different products? Use a single allocation base to allocate the company's indirect costs instead of having multiple allocation bases Ensure each indirect cost pool contains cost items that are driven by the same cost driver Use actual costing instead of normal costing Group of answer choices Statement 1 only Statement 2 only Statement 3 only Statement 1, 2 and 3   None of above statements

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Berkeley Inc. produces multiple products and incurs significant amounts indirect costs.  Which of the following options would likely help Berkeley improve the accuracy of its indirect cost allocation to its different products?

Use a single allocation base to allocate the company's indirect costs instead of having multiple allocation bases

Ensure each indirect cost pool contains cost items that are driven by the same cost driver

Use actual costing instead of normal costing

Group of answer choices

Statement 1 only

Statement 2 only

Statement 3 only

Statement 1, 2 and 3

 

None of above statements

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