Which of the Following Statements Concerning the Allocation of Indirect

Multiple Choice

Which of the following statements concerning the allocation of indirect expenses to departments is correct?

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 choose similar bases to allocate overhead costs to departments.