The Fixed Costs of Service Departments Should Be Allocated to Operating

question 19

True/False

The fixed costs of service departments should be allocated to operating departments in proportion to the amount of capacity the service departments actually use during the period.

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Definitions:

Retained

Retained refers to something that is kept or continued to be used, held in position, or remembered.

Access

The ability, right, or opportunity to reach, use, or participate in something.

Minutes

The official written record of the discussions and decisions made during meetings.

Capital Letters

A method of writing in which each word starts with a capital letter for emphasis or to denote importance.