For Performance Evaluation Purposes, the Fixed Costs of a Service

Multiple Choice

For performance evaluation purposes, the fixed costs of a service department should be charged to operating departments using:

A) actual fixed costs and the budgeted level of activity for the period.
B) budgeted fixed costs and the actual level of activity for the period.
C) budgeted fixed costs and the peak-period or long-run average servicing capacity.
D) actual fixed costs and the peak-period or long-run average servicing capacity.