Service department costs can be assigned to ________.
A) customers only
B) producing departments only
C) customers and producing departments
D) none of the above

Question

Quizplus · Accepted Answer

Service department costs are meant to support producing departments in achieving their objectives. However, to determine the net profit made by the organization, these costs should be allocated to the appropriate department--customer, producing or both. Thus, costs can be assigned to customers and producing departments.

Service Department Costs Can Be Assigned to ________