Solved

Why Is Activity-Based Costing Used to Allocate Service Department Costs

Question 50

Multiple Choice

Why is activity-based costing used to allocate service department costs?


A) There are fewer cost-allocation bases.
B) It can lead to improved allocation of production department costs to service departments.
C) It results in identifying more accurate cost-allocation bases.
D) None of the answers is correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions