Determining controllability is rarely a problem when a company allocates service department costs to other departments.

Question

Quizplus · Accepted Answer

Determining controllability can be a problem when service department costs are allocated to other departments because those departments may not have control over the service department's activities or costs. As a result, the allocation may not accurately reflect the department's actual controllability.

Determining Controllability Is Rarely a Problem When a Company Allocates