A line activity:
A) Generally has its costs allocated to support activities.
B) Directly relates to producing services or products.
C) Must be allocated costs from all support activities, whether or not the line activity consumed costs of the support activity.
D) Must be allocated costs from all support activities for which it consumed costs.
E) None of the above is a correct statement relating to a line activity.
Correct Answer:
Verified
Q1: When a support department's activities are not
Q2: The cost driver used to allocate costs
Q4: In decentralized firms, it is likely that
Q5: The purchasing department is an example of
Q6: Cost allocation rates serve as the explicit
Q7: Under the direct method of allocating support
Q8: A support activity:
A)Is needed to run the
Q9: The step-down method of allocating support activity
Q10: It may be more appropriate for firms
Q11: The direct and step-down methods of allocating
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