A Reason for Using Capacity Available Instead of Capacity Used

Multiple Choice

A reason for using capacity available instead of capacity used when allocating budgeted fixed costs from service departments to user departments is ________.

A) actual usage by user departments does not affect short run allocations to other user departments
B) actual usage by user departments does not affect long run allocations to other user departments
C) that the allocation methods to assign service department costs to producing departments are inaccurate
D) that the allocation methods to assign service department costs to producing departments are not available