Variable costs of service departments are allocated to user departments using ________ cost rates instead of ________ cost rates.
A) actual; budgeted
B) budgeted; actual
C) long-range; short-range
D) short-range; long-range

Question

Quizplus · Accepted Answer

Variable costs of service departments are typically allocated to user departments using budgeted cost rates instead of actual cost rates to provide stability and predictability in the allocation process.

Variable Costs of Service Departments Are Allocated to User Departments