Which of the Following Statements About Service Departments and Their

question 85

Multiple Choice

Which of the following statements about service departments and their costs is not true?

• A)Service departments rarely provide services to other service departments.
• B)Some service departments may be able to precisely measure the services it provides to other departments.
• C)Service department costs should be included in total product costs.
• D)Allocation of service department costs should be made on an equitable basis.

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Definitions:

Plan

A detailed proposal for doing or achieving something, typically involving the setting of goals, defining of steps, and allocation of resources.

Financially Rewards

Monetary or fiscal incentives provided to individuals or employees as recognition for their work or achievements.

Volunteerism

The practice of offering one's time and services to assist others or contribute to a cause without financial compensation.

Staff

Employees or workers who are part of an organization or business and contribute to its operations and success.