(Appendix 4B)Cost allocation is still an issue even if a service department generates some revenues from operating departments.

Question

Quizplus · Accepted Answer

Cost allocation is still necessary even if a service department generates revenues from operating departments because the revenues generated may not cover all the costs incurred by the service department, and thus the remaining costs must be allocated to the operating departments.

(Appendix 4B)Cost Allocation Is Still an Issue Even If a Service