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A corporation allocates indirect corporate overhead costs to its operating divisions. The company uses a cause-and-effect criterion in the selection of appropriate allocation bases. Which of the following would be an appropriate allocation base to assign the costs of the corporate personnel department to the operating divisions using a cause-and-effect criterion? A. Number of employees in each division. B. Total service years of employees in each division. C. Square footage of space occupied by each division. D. Total book value of identifiable division assets.
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