All of the following objectives are reasons to allocate service department costs to compute full cost except to
A)provide information on cost recovery.
B)abide by regulations that may require full costing in some instances.
C)provide information on controllable costs.
D)reflect production's "fair share" of costs.

Question

Quizplus · Accepted Answer

Allocating service department costs helps to determine controllable costs, provide information on cost recovery, and reflect production's fair share of costs. Regulations may require full costing in some instances but this is not a reason in itself to allocate service department costs.

All of the Following Objectives Are Reasons to Allocate Service