Which of the following is not true about production departments?
A)They perform the actual manufacturing operations that physically change the units being produced.
B)Since they receive the benefit of work performed by service departments,service department costs should be distributed to them.
C)The cost of production departments should be distributed to other production departments that benefit from their operations.
D)Machining and painting would be examples of production departments.

Question

Quizplus · Accepted Answer

Production departments are primarily involved in the actual manufacturing operations and do not distribute their costs to other production departments. Instead, they receive allocations of service department costs, which support the production process.

Which of the Following Is Not True About Production Departments