An advantage to using budgeted usage, rather than actual usage, for the allocation base is...
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Accounting
An advantage to using budgeted usage, rather than actual usage, for the allocation base is that a. ASPE/IFRS requires it for comparability to previous years. b. management does not have to be accountable for actual costs since the system only deals with budgeted costs. c. it is consistent with a short-run time horizon. d. variable costs are lower. e. user divisions will know their allocated costs in advance.
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