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What Is the Final Step for Allocating Service Department Costs

Question 61

Multiple Choice

What is the final step for allocating service department costs to production departments?


A) Assign overhead costs that are directly attributable to a service or production department.
B) Allocate other overhead costs (that are not directly attributable to a service or production department) based on some cost driver.
C) Allocate service department costs to production departments
D) Service department costs cannot be allocated to production departments.

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