Assignable Causes of Variation Include Any Variable-Causing Factors That Can

question 84

True/False

Assignable causes of variation include any variable-causing factors that can be identified and eliminated.

---

Definitions:

Service Center

A department or facility providing support services to other units within an organization, often not directly generating profit.

Cost Center

A department or segment of a business wherein costs can be directly attributed, but which does not directly generate revenue.

Allocation Basis

Allocation basis is a criterion used to distribute costs among different departments, products, or activities based on their use or consumption.

Departmental Costs

Costs that are attributed directly to a specific department within an organization.