When Budgeted Cost-Allocations Rates Are Used ________

question 44

Multiple Choice

When budgeted cost-allocations rates are used ________.

• A) user departments are not informed about the charges until the end of the period
• B) the manager of the supplier division bears the risk of unfavorable cost variances
• C) user divisions pay for costs that exceed budgeted amounts
• D) user divisions pay for inefficiencies of the supplier department