Which of the following explains why it is difficult to apply support department costs, such as janitorial services, to products?
A)It is difficult to measure the costs.
B)The costs cannot be quantified in the general ledger.
C)Appropriate cost drivers are difficult, if not impossible, to determine.
D)Support department activities are hard to define.

Question

Quizplus · Accepted Answer

Appropriate cost drivers for support department costs like janitorial services are challenging to determine because these costs do not directly correlate with the production volume or direct labor hours, making it hard to accurately allocate them to specific products.

Which of the Following Explains Why It Is Difficult to Apply