Which of the following statements explains why it is challenging to allocate support department costs, like maintenance work, to products?
A)The costs cannot be adequately known or calculated.
B)The support activities are hard to define.
C)The appropriate allocation base can be difficult to determine.
D)Total costs per department are not accurate and may result in undercharging the customer.

Question

Quizplus · Accepted Answer

The challenge in allocating support department costs often lies in determining the appropriate allocation base that accurately reflects the usage of support services by different products or departments.

Which of the Following Statements Explains Why It Is Challenging