The costs of services charged to a profit center on the basis of its use of those services
Are called
A)operating expenses.
B)noncontrollable charges.
C)service department charges.
D)activity charges.

Question

Quizplus · Accepted Answer

Service department charges are costs of services charged to a profit center based on the profit center's use of those services. This method of charging allows for more accurate allocation of costs and promotes accountability for the use of services. Operating expenses refer to all expenses incurred in the normal course of running the business, while noncontrollable charges are costs that cannot be influenced or changed by a profit center. Activity charges refer to costs associated with specific activities or processes within a business.

The Costs of Services Charged to a Profit Center on the Basis