Which of the following reasons for allocating service department costs to user departments would not be applicable?
A)Provide the best possible incentives for each service level.
B)Accurately calculate the profitability of each operating unit.
C)Evaluate the performance of managers.
D)Correctly calculate the units' profit contribution to the company.

Question

Quizplus · Accepted Answer

Allocating service department costs to user departments is not primarily about providing incentives for service levels; it's more about accurate cost allocation and performance evaluation.

Which of the Following Reasons for Allocating Service Department Costs