Service department costs are allocated to user departments, in part, because:
A) it measures the use of plant capacity.
B) it helps ensure that machines are operating efficiently.
C) user departments use the functions of service departments.
D) service departments are final cost centers.

Question

Quizplus · Accepted Answer

User departments utilize the services provided by service departments, so costs are allocated to reflect the consumption of these services.

Service Department Costs Are Allocated to User Departments, in Part