To discourage unnecessary use of a support department, management might ________.
A) allocate user department costs based upon support department usage
B) allocate support department costs based upon user department usage
C) allocate a fixed amount of support department costs to each and every department
D) allocate a fixed amount of user department costs to each and every department

Question

Quizplus · Accepted Answer

By allocating support department costs based upon user department usage, departments will be more mindful of their use of support services as they will be charged for their usage. This will discourage unnecessary use of support departments and promote cost-conscious behavior among the user departments. Allocating user department costs or allocating a fixed amount of support department costs to each department does not effectively address the issue of unnecessary use of support departments.

To Discourage Unnecessary Use of a Support Department, Management Might