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 true?

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