Service department costs are:
A) Generally treated as period costs rather than product costs.
B) Reported as selling and administrative expenses on the income statement.
C) Eventually applied by the user departments to the units produced.
D) Seldom found in manufacturing organizations.

Question

Quizplus · Accepted Answer

Service department costs are allocated to user departments, which then apply these costs to the units they produce, making them part of the product cost.

Service Department Costs Are