For Performance Evaluation Purposes, the Fixed Costs of a Service

question 17

Multiple Choice

For performance evaluation purposes, the fixed costs of a service department should be charged to operating departments using:

• A) actual fixed costs and the budgeted level of activity for the period.
• B) budgeted fixed costs and the actual level of activity for the period.
• C) budgeted fixed costs and the peak-period or long-run average servicing capacity.
• D) actual fixed costs and the peak-period or long-run average servicing capacity.

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Definitions:

Particles

Small localized objects to which can be ascribed several physical or chemical properties such as volume or mass.

Osmoregulation

The process by which living organisms control the concentration of water and electrolytes in their bodies to maintain homeostasis.

Concentration

The amount of a substance in a specific volume of solution, often measured in moles per liter.

Water

A ubiquitous chemical substance composed of hydrogen and oxygen, essential for all known forms of life and used in a wide range of industrial processes.