Which of the Following Statements Is True Concerning Lump-Sum Allocations

question 141

Multiple Choice

Which of the following statements is true concerning lump-sum allocations of service department costs?

• A) They make fixed costs appear to be variable to the manager receiving the allocation.
• B)They are not affected by the activity level in the department receiving the allocation.
• C)They make fixed costs appear to be variable to the manager receiving the allocation and are not affected by the activity level in the department receiving the allocation.
• D)They do not make fixed costs appear to be variable to the manager receiving the allocation and are affected by the activity level in the department receiving the allocation