If a Portion of the Actual Cost Incurred by a Service

Multiple Choice

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.