When allocating fixed costs from service departments to production departments,managers should use ________ instead of ________.
A) capacity used; capacity available
B) capacity available; budgeted capacity
C) capacity used; budgeted capacity
D) capacity available; capacity used

Question

Quizplus · Accepted Answer

Managers should use capacity available instead of capacity used to ensure that all potential costs are accounted for, even if the full capacity is not currently being utilized.

When Allocating Fixed Costs from Service Departments to Production Departments,managers