From the Perspective of a Manager of a Producing Department

question 90

Multiple Choice

From the perspective of a manager of a producing department, which of the following is a desired feature of a cost allocation received from a service department?

• A)The amount of the allocation should be based solely on the usage of the service by the producing department and not a function of the usage of the service by other departments.
• B)The budgeted cost should be allocated rather than actual service department costs.
• C)The allocation should force the production manager to pay for fluctuating demands that the production manager is creating.
• D)All of these answer choices are correct.

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