Consider the Following Statements About Support Department Costs

question 29

Multiple Choice

Consider the following statements about support department costs.
i. In order to assign all manufacturing costs to products, support department costs must be allocated to production departments.
ii. Support department costs are period costs rather than product costs because the support departments are not directly involved in production.
iii. Support departments are not considered crucial to the production process.
Which statement/s is/are correct?

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

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