Explain what each of the following statements means: a. Service departments do not work directly on products.

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Explain what each of the following statements means:

 a. Service departments do not work directly on products.

b. Service department costs are manufacturing overhead costs.

c. Overhead rates are not used for service departments.

d. In spite of part (c), service department costs become part of product costs.

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Managerial Accounting For Undergraduates

ISBN: 9780357499948

2nd Edition

Authors: James Wallace, Scott Hobson, Theodore Christensen

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