Cost application refers to costs allocated to _____.
A)both service departments and revenue-producing departments
B)service departments only
C)revenue-producing departments only
D)revenue-producing products or services

Question

Quizplus · Accepted Answer

Cost application refers to costs allocated to revenue-producing products or services, as these are the areas where the costs are ultimately incurred and can be traced back to. Service departments may incur costs, but these costs are indirect costs and are allocated to the revenue-producing departments.

Cost Application Refers to Costs Allocated to _____