Consider the Following Statements About Support Department Cost Allocations

question 74

Multiple Choice

Consider the following statements about support department cost allocations.
i. In a modern manufacturing environment, it is not necessary to allocate support department costs.
ii. Support department cost allocations continue to be necessary when a highly automated system is in use.
iii. In a flexible manufacturing system, the need to allocate costs diminishes because more costs have become traceable to the product.
Which statement/s is/are true?

• A) i
• B) i and ii
• C) ii and iii
• D) i, ii and iii

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