Which of the following best describes intermediate cost centers?
A) Any cost center whose costs are not allocated to another cost center.
B) Service departments cannot be intermediate cost centers.
C) User departments cannot be intermediate cost centers.
D) Any cost center whose costs are charged to other departments in an organization.

Question

Quizplus · Accepted Answer

Intermediate cost centers are those whose costs are allocated or charged to other departments within an organization, typically to reflect the use of services or resources provided by the intermediate cost center.

Which of the Following Best Describes Intermediate Cost Centers