When Allocating Fixed Costs from Service Departments to Production Departments,managers

question 3

Multiple Choice

When allocating fixed costs from service departments to production departments,managers should use ________ instead of ________.

• A) capacity used; capacity available
• B) capacity available; budgeted capacity
• C) capacity used; budgeted capacity
• D) capacity available; capacity used

---

Definitions:

Repetitive Process

A series of actions or operations that are performed over and over again, usually in a manufacturing or production setting.

Process Chart

A visual representation of the steps involved in a process, showing the sequence of tasks and decisions needed to complete a task or process.