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For Performance Evaluation Purposes,variable Costs of Service Departments Should Be

Question 2

Multiple Choice

For performance evaluation purposes,variable costs of service departments should be charged to operating departments at the end of the period on the basis of:


A) the actual rate based on peak-period service needed.
B) the budgeted rate based on peak-period service needed.
C) the actual rate based on actual service provided.
D) the budgeted rate based on actual service provided.

Correct Answer:

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