Common fixed costs that are allocated between departments are generally
A)direct fixed costs of the department.
B)relevant to the decision of whether to discontinue the department.
C)irrelevant to the decision of whether to discontinue the department.
D)direct fixed costs of other departments.

Question

Quizplus · Accepted Answer

Common fixed costs are incurred for the joint benefit of multiple departments and cannot be directly attributed to one specific department. Therefore, they are not relevant to the decision of whether to discontinue a particular department.

Common Fixed Costs That Are Allocated Between Departments Are Generally