Which of the Following Is Not a Reason That Costs

question 1

Multiple Choice

Which of the following is not a reason that costs of operating service departments are allocated to other departments?

• A)Many departments consume the services provided by service departments and should be assigned a share of the costs associated with the services consumed.
• B)Allocating service costs to other departments for services provided gives department managers incentives to control the use of support services.
• C)External reporting regulations (for tax and financial reporting)require allocating manufacturing overhead to the units produced.
• D)Many departments consume the services provided by service departments and should be charged an arbitrary share of the costs because the costs must be allocated to someone.

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Definitions:

Carbon Tetrabromide

A chemical compound with the formula CBr4, known for its high density and usage in organic synthesis as a solvent or reagent.

Sulfur Trioxide

A chemical compound with the formula SO3, which is a key intermediate in the sulfuric acid manufacturing process, known for its role in acid rain formation when released into the atmosphere.

Dihydrogen Selenide

A chemical compound with the formula H2Se, a colorless, toxic gas with the smell similar to rotten horseradish.

Sulfur Tetrafluoride

A chemical compound with the formula SF4, known for its unique geometry and ability to act as a ligand in coordination complexes.