Which of the following statements is true concerning lump-sum allocations of service department costs?
A) They make fixed costs appear to be variable to the manager receiving the allocation.
B) They are not affected by the activity level in the department receiving the allocation.
C) They make fixed costs appear to be variable to the manager receiving the allocation and are not affected by the activity level in the department receiving the allocation.
D) They do not make fixed costs appear to be variable to the manager receiving the allocation and are affected by the activity level in the department receiving the allocation
Correct Answer:
Verified
Q36: If managers are not charged for centrally
Q37: Activity-based management aims at improving the efficiency
Q38: Costs may not be allocated to
A)cost drivers.
B)services.
C)departments.
D)cost
Q39: Which of the following is least likely
Q40: ABC allocates cost pools to cost objectives
Q42: Which of the following is a measure
Q43: Which of the following allocations would not
Q44: Which of the following is not a
Q45: Lump-sum allocations
A)generally changes year after year.
B)do not
Q46: Service department costs are allocated to producing
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