ABC Corporation Has Three Service Departments with the Following Costs

question 48

Multiple Choice

ABC Corporation has three service departments with the following costs and activity base: What is the service department charge rate for the Accounting Department?

• A) $714
• B) $250
• C) $625
• D) $0.004

Appreciate the significance of budgeted vs. actual performance analysis in managerial accounting.

Calculate sales price and volume variances to assess performance in non-manufacturing contexts.

Recognize the impact of volume changes on unit fixed and variable costs.

Understand the accounting treatment for insignificant cost variances.