If a Portion of the Actual Cost Incurred by a Service

question 6

Multiple Choice

If a portion of the actual cost incurred by a service department is not charged to operating departments, then at the end of the period, this uncharged cost should be:

• A)allocated equally between the other departments.
• B)allocated between the other departments in proportions to budgeted activity.
• C)treated as a variance of the service department.
• D)treated as a variance of the other departments.

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Definitions:

Dollar Amount

A numerical monetary value specified in units of currency, typically referring to the amount of money.

Repaid

Repaid pertains to the act of paying back money that was borrowed from an individual or institution.

Compound-Interest CSB

An interest calculation method, possibly referring to Canada Savings Bonds, where earned interest is added to the principal, and future interest calculations are based on the new total.

Redeemed

The act of repaying or buying back a security or loan, often before it matures.