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Business, 21.04.2020 16:17 zozo9987

Stuart Inc. is planning to lease computer equipment for its production and testing departments. Currently, the production and testing departments lease it separately and pay $231,000 and $399,000, respectively, as lease charges. If both the departments lease the equipment jointly, the contract will cost only $570,000. If the cost-allocation method ranks the individual users of a cost object in the order of users most responsible for the common cost and then uses this ranking to allocate cost among those users, Stuart, Inc. must be using the cost-allocation method.

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