All of the Following Objectives Are Reasons to Allocate Service

question 107

Multiple Choice

All of the following objectives are reasons to allocate service department costs to compute full cost except to

• A)provide information on cost recovery.
• B)abide by regulations that may require full costing in some instances.
• C)provide information on controllable costs.
• D)reflect production's "fair share" of costs.

---

Definitions:

Customers

Individuals or entities that purchase goods or services from a business.

Needs

Basic or essential requirements that individuals or groups seek to fulfill, driving motivation and behavior.

Strategic Plan

A long-term, forward-looking approach with overarching goals and objectives which guides the overall direction of an organization or business.

Ford Motor Company

An American multinational automaker known for automobile manufacturing as well as the production of commercial vehicles and luxury cars.