Consider the Following Statements About Support Department Costs

question 22

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

---

Definitions:

Sales Growth Rate

A measure of the increase in sales over a specific period, usually expressed as a percentage.

Financial Statements

Structured reports detailing the financial activities and condition of a business, including balance sheet, income statement, and cash flow statement.

Sustainable Growth Rate

The maximum rate at which a company can grow its earnings without needing to increase financial leverage or equity financing.

Financial Ratios

Quantitative measures used to assess various aspects of a company's financial health and performance.