When a support department's activities are not fully consumed by other departments (that is, the support department self-consumes some costs) :
A) We ignore such self-consumption.
B) Not allocating the self-consumption negatively affects the accuracy of allocations.
C) We must allocate the self-consumption costs to line activities.
D) A and B only.
E) None of the above.
Correct Answer:
Verified
Q2: The cost driver used to allocate costs
Q3: A line activity:
A)Generally has its costs allocated
Q4: In decentralized firms, it is likely that
Q5: The purchasing department is an example of
Q6: Cost allocation rates serve as the explicit
Q7: Under the direct method of allocating support
Q8: A support activity:
A)Is needed to run the
Q9: The step-down method of allocating support activity
Q10: It may be more appropriate for firms
Q11: The direct and step-down methods of allocating
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