It Is Important That a Standard Rate Rather Than Actual

question 48

Multiple Choice

It is important that a standard rate rather than actual expenses be used to charge service department costs to producing departments so that:

• A)production department managers know the amount of usage at the beginning of the year.
• B)extra costs resulting from inefficient operations in service departments cannot be passed on to the production departments.
• C)service department managers don't need to worry about meeting their budgets.
• D)extra costs resulting from inefficient operations in production departments can not be passed on to the service departments.

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Not meeting any obligation of a contract, regardless of it being formalized in writing or orally, without a justified legal justification.