Allocating Service Department Costs to Revenue-Producing Departments Is an Alternative

question 15

Multiple Choice

Allocating service department costs to revenue-producing departments is an alternative to

• A)responsibility accounting.
• B)the use of profit centers.
• C)the use of cost centers.
• D)a transfer pricing system.

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Definitions:

Anatomical Position

A standardized stance in human anatomy where the body is erect, the feet are slightly apart, arms are at the sides, and the head and palms face forward.

Palm

The inner part of the hand extending from the wrist to the bases of the fingers.

Inferior

A term used to describe a position below or lower than another part of the body; opposite of superior.

Sternum

The long, flat bone located in the center of the chest which connects to the ribs via cartilage to form the front part of the rib cage, providing protection to the chest organs.