Which of the following is not included in departmental product costs?
A)Costs identifiable with the department.
B)Costs added by prior production departments carried to the department.
C)Cost of sales and administrative departments that have been allocated to the production department.
D)Costs of factory service departments that have been allocated to the production department.

Question

Quizplus · Accepted Answer

Departmental product costs only include costs identifiable with the department and costs added by prior production departments carried to the department. Costs of factory service departments that have been allocated to the production department are also included. However, cost of sales and administrative departments that have been allocated to the production department are not included in departmental product costs.

Which of the Following Is Not Included in Departmental Product