Which of the following statements about service departments and their costs is not true?
A)Service departments rarely provide services to other service departments.
B)Some service departments may be able to precisely measure the services it provides to other departments.
C)Service department costs should be included in total product costs.
D)Allocation of service department costs should be made on an equitable basis.

Question

Quizplus · Accepted Answer

Service departments may provide services to other service departments, especially if they are specialized and have expertise that other departments need. For example, an IT department may provide support to both the HR department and the finance department.

Which of the Following Statements About Service Departments and Their