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QUESTION

Manhattan Electronics uses the sales revenue of its various divisions to allocate costs connected with the upkeep of its headquarters building.

B. Manhattan Electronics uses the sales revenue of its various divisions to allocate costs connected with the upkeep of its headquarters building. A. To charge operating departments with the depreciation of forklifts used at its central warehouse, Shalimar Electronics charges predetermined lumpsum amounts calculated on the basis of the longterm average use of the services provided by the warehouse to the various segments. 22. Which of the following companies is following a policy with respect to the costs of service departments that is not recommended? A. To charge operating departments with the depreciation of forklifts used at its central warehouse, Shalimar Electronics charges predetermined lumpsum amounts calculated on the basis of the longterm average use of the services provided by the warehouse to the various segments. B. Manhattan Electronics uses the sales revenue of its various divisions to allocate costs connected with the upkeep of its headquarters building. C. Rainier

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