The costs of services charged to a profit center on the basis of its use of those services are called:
A) operating expenses
B) noncontrollable charges
C) service department charges
D) activity charges

Question

Quizplus · Accepted Answer

Service department charges refer to the costs of services provided by one department to another within the same organization, and are charged on the basis of usage. This allows for a fair allocation of costs and helps to ensure that each profit center is accountable for the services it receives.

The Costs of Services Charged to a Profit Center on the Basis