When Allocating Service Department Costs to Producing Departments,which of the Following

question 53

Multiple Choice

When allocating service department costs to producing departments,which of the following guidelines is NOT followed?

• A) Allocate variable- and fixed-cost pools separately.
• B) Establish the cost-allocation procedure before rendering the service.
• C) Evaluate performance using flexible budgets for each service department.
• D) Establish the cost-allocation procedure after rendering the service.

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