The fixed costs of service departments should be allocated to production departments based on
A)actual short-run utilization based on predetermined rates.
B)actual short-run units based on actual rates.
C)the service department's expected costs based on expected long-run use of capacity.
D)the service department's actual costs based on actual utilization of services.

Question

Quizplus · Accepted Answer

The Answer of The fixed costs of service departments should be allocated to production departments based on
A)actual short-run utilization based on predetermined rates.
B)actual short-run units based on actual rates.
C)the service department's expected costs based on expected long-run use of capacity.
D)the service department's actual costs based on actual utilization of services.

The Fixed Costs of Service Departments Should Be Allocated to Production