Cost allocation base
Store incur $6,000 of indirect advertising cost to operate.
Toys tools clothes
Direct advertising cost $7,000 $9,000 $1,000
Advertising ad space 60% 25% 15%
Sales $20,000 $35,000 $50,000
How much of indirect adverstising cost will be allocated to toys if ad space is the allocation base. How much indirect advertising cost of store will be allocated to tools if direct adverstising cost is allocation base. How much indirect adverstising cost will be allocated to clothes if sales is the allocation base
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