All of the Following Objectives Are Reasons That Service Department
All of the following objectives are reasons that service department allocations can motivate managers except to
A) instill a consideration of support costs in production managers.
B) encourage production managers to help service departments control costs.
C) encourage the usage of certain services.
D) determine divisional profitability.
Which of the following is a reason for allocating service department costs and thereby motivating management?
A) provides for cost recovery
B) provides relevant information in determining corporate-wide profits generated by alternative actions
C) meets regulations in some pricing instances
D) reflects usage of services on a fair and equitable basis
Service departments provide functional tasks for which of the following?
A) no no
B) yes no
C) no yes
D) yes yes
After service department costs have been allocated, what is the final step in determining full product cost?
A) determine direct material cost
B) determine overhead application rates for revenue-producing areas
C) determine direct labor cost
D) determine total service department costs