What Is the Final Step for Allocating Service Department Costs

question 61

Multiple Choice

What is the final step for allocating service department costs to production departments?

• A)Assign overhead costs that are directly attributable to a service or production department.
• B)Allocate other overhead costs (that are not directly attributable to a service or production department)based on some cost driver.
• C)Allocate service department costs to production departments
• D)Service department costs cannot be allocated to production departments.

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