Which of the Following Does NOT Apply to Support Departments

question 13

Multiple Choice

Which of the following does NOT apply to support departments?

• A)A support department is an operating department.
• B)Support departments create special accounting problems when they provide reciprocal support to each other.
• C)An example of a support department would be a personnel department.
• D)To obtain accurate product costs requires the inclusion of support department costs.
• E)Direct support costs are always traced, indirect support department costs are allocated.

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Definitions:

British Enterprise

Entities engaged in commercial, industrial, or professional activities within the United Kingdom.

Appreciated

The increased value of an asset or currency over time, often due to market or economic factors.

Return on Investment

A ratio that measures the gain or loss generated on an investment relative to the amount of money invested.

Pegged Exchange Rate

A fixed exchange rate system in which a currency's value is fixed against the value of another currency or a basket of other currencies.