Question: What is a common feature of all three methods (direct, sequential, and reciprocal services) of allocating support department costs to production departments? a. All three


What is a common feature of all three methods (direct, sequential, and reciprocal services) of allocating support department costs to production departments? a. All three overlook certain types of overhead costs. O b. All three are equally expensive to utilize. c. All three follow the same six-step process O d. All three are equally complicated to administer. The allocation of costs to products has important implications for performance evaluation for production managers. Which of the following is one way in which evaluations may be impacted? a. Production manager bonuses may be tied to the ability to reclassify costs from direct labor to direct materials. O b. Production manager bonuses may be tied to the ability to decrease or contain product costs. c. Production manager bonuses may be tied to the ability to increase or contain product costs. Od. None of these choices are correct
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