The True Statement Concerning the Allocation of Indirect Expenses to Departments

Multiple Choice

The true statement concerning the allocation of indirect expenses to departments is:

A) Accountants have developed methods that have completely removed the subjectivity in allocating indirect costs to departments
B) A departmental profit calculation should exclude expenses that the departmental manager has no control over
C) When preparing departmental profit reports it is best to assume that the departments are independent businesses
D) Different accountants will normally chose similar bases to allocate overhead costs to departments