The allocation of fixed costs in service departments to user departments is based on ________.
A) actual capacity used in last period
B) budgeted capacity available to user
C) actual usage by user department
D) actual usage by service department

Question

Quizplus · Accepted Answer

The allocation of fixed costs in service departments to user departments is typically based on budgeted capacity available to the user, as it provides a stable basis for allocation and encourages efficient use of resources.

The Allocation of Fixed Costs in Service Departments to User