Multiple Choice
(Appendix 12B) If a portion of the actual cost incurred by a service department is not charged to operating departments, then at the end of the period, this uncharged cost should be:
A) allocated equally between the other departments.
B) allocated between the other departments in proportions to budgeted activity.
C) treated as a variance of the service department.
D) treated as a variance of the other departments.
Correct Answer:
Verified
Correct Answer:
Verified
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