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  3. lennoxlennox suspects that her allocation of indir

LennoxLennox suspects that her allocation of indirect costs could be giving misleading results so she...

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Accounting

LennoxLennox suspects that her allocation of indirect costs could be giving misleading results so she decides to develop an ABC system. She identifies three activities: documentation preparation, information technology support, and training LennoxLennox figures that documentation costs are driven by the number of pages, information technology support costs are driven by the number of software applications used, and training costs are most closely associated with the number of direct labour hours worked. Estimates of the costs and quantities of the allocation bases follow

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