Business, 22.11.2019 21:31 tanyiawilliams14991
Which of the following statements is incorrect when allocating service department costs to operating departments?
a. variable costs should be charged using a predetermined rate applied to actual services consumed.
b. fixed costs should be charged in lump sums to each operating department in proportion to peak-period needs or long-run average needs.
c. fixed costs are typically not allocated to operating departments, but must be absorbed by the service departments.
d. variable costs and fixed costs should be charged separately.
Answers: 3
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Which of the following statements is incorrect when allocating service department costs to operating...
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