When Allocating Service Department Costs to Producing Departments,which of the Following

Multiple Choice

When allocating service department costs to producing departments,which of the following guidelines is NOT followed?

A) Allocate variable- and fixed-cost pools separately.
B) Establish the cost-allocation procedure before rendering the service.
C) Evaluate performance using flexible budgets for each service department.
D) Establish the cost-allocation procedure after rendering the service.