Which of the Following Is Not True Regarding Service Department

question 23

Multiple Choice

Which of the following is not true regarding service department expenses?

• A)Preparing a budget for a service department requires the same procedures as those used for production departments.
• B)Expenses of the service departments are allocated to production departments using a standard application rate.
• C)Production departments will consider allocated service department expenses in developing their budgets.
• D)Variances are not computed for expenses in service departments.

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Definitions:

Efficient Taxation

A taxation system designed to minimize the economic costs or distortions that it imposes on society, while achieving desired revenue and distributional effects.

Excess Burden

The cost to society created by market inefficiency, typically due to taxes or government policies that distort resource allocation.

Progressive

Relating to progressive policies or movements that advocate for change, reform, and innovation, often in the social, political, or economic sphere.

Elastic Demand

refers to a situation where the quantity demanded of a good or service is highly responsive to changes in its price.