All of the Following Statements About Service Department Costs Are

question 48

Multiple Choice

All of the following statements about service department costs are true except:

• A) Service department costs include the costs of providing services to other departments within an organisation.
• B) Service department costs are only allocated to producing departments.
• C) Service department costs should be allocated using an allocation base or cost driver related to the costs incurred.
• D) Service department costs do not include the costs of providing services to external customers.

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Definitions:

Passive Voice

A sentence construction where the subject of the sentence is acted upon instead of performing the action.

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A grammatical voice used when the subject of the sentence performs the action expressed by the verb.

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