Determining the basis used to allocate support department costs follows which guideline?
A)Revenue generation.
B)Profit maximization.
C)Cause and effect.
D)Goal comparison.

Question

Quizplus · Accepted Answer

The basis for allocating support department costs is typically determined by the cause-and-effect relationship, where costs are allocated based on the extent to which the support department's services are used by other departments.

Determining the Basis Used to Allocate Support Department Costs Follows