Why does allocating freight expenses based on the quantity sold a reasonable choice? How does...
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Accounting
Why does allocating freight expenses based on the quantity sold a reasonable choice?
How does the allocation method impact projected rent expense4, salary expense, and
advertising expense? Which method is the fairest? Would you recommend that the
company use a single or multi-driver allocation method? Why?
(Freight cost is allocated based on quantity sold all other indirect expenses could be allocated evenly across the stores, by the square footage, or by the quantity of bottles sold )
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