Variable Costs of Service Departments Are Allocated to User Departments

question 72

Multiple Choice

Variable costs of service departments are allocated to user departments using ________ cost rates instead of ________ cost rates.

• A) actual; budgeted
• B) budgeted; actual
• C) long-range; short-range
• D) short-range; long-range

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Definitions:

Reliability

The quality of being dependable or able to produce consistent results over time.

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