Question: It is important that a standard rate rather than actual expenses be used to charge service department costs to producing departments so that: Question 1
It is important that a standard rate rather than actual expenses be used to charge service department costs to producing departments so that:
Question Select one:
a
extra costs resulting from inefficient operations in service departments cannot be passed on to the production departments.
b
production department managers know the amount of usage at the beginning of the year.
c
extra costs resulting from inefficient operations in production departments can not be passed on to the service departments.
d
service department managers don't need to worry about meeting their budgets.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
