For Performance Evaluation Purposes, the Variable Costs of a Service

question 3

Multiple Choice

For performance evaluation purposes, the variable costs of a service department should be charged to operating departments using:

• A)the actual variable rate and the budgeted level of activity for the period.
• B)the budgeted variable rate and the actual level of activity for the period.
• C)the budgeted variable rate and the budgeted level of activity for the period.
• D)the actual variable rate and the peak-period or long-run average servicing capacity.

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