For Performance Evaluation Purposes,variable Costs of Service Departments Should Be

question 2

Multiple Choice

For performance evaluation purposes,variable costs of service departments should be charged to operating departments at the end of the period on the basis of:

• A)the actual rate based on peak-period service needed.
• B)the budgeted rate based on peak-period service needed.
• C)the actual rate based on actual service provided.
• D)the budgeted rate based on actual service provided.