WST Corporation Uses Actual Amounts to Calculate Support Department Cost

Multiple Choice

WST Corporation uses actual amounts to calculate support department cost allocation rates. A disadvantage of this practice is:

A) Managers are held responsible for actual usage.
B) Support charges are known in advance by managers.
C) If one department uses much less of a support department's services than others, the support charge to remaining departments will increase to compensate.
D) Managers cannot measure the value of support services used.