Managers trace ________ to service departments.Managers allocate ________ to service departments.
A) producing department costs; service department costs
B) producing department costs; producing department costs
C) direct costs; indirect costs
D) direct costs; producing department costs

Question

Quizplus · Accepted Answer

Managers trace direct costs to service departments because these costs can be directly attributed to them. Indirect costs, which cannot be directly traced, are allocated to service departments.

Managers Trace ________ to Service Departments