Criteria for selecting allocation bases for service department allocations should not include:
A) Direct, traceable benefits from the service.
B) The extent of facilities provided.
C) The ease of making an allocation.
D) Sales dollars generated during the period.

Question

Quizplus · Accepted Answer

Sales dollars generated during the period are not related to the actual use or benefit derived from the service department, making it an inappropriate basis for allocation.

Criteria for Selecting Allocation Bases for Service Department Allocations Should