Service department charges are similar to the expenses that would be incurred if the profit center purchased the services from outside the company.

Name: Service department charges are similar to the expenses that would be incurred if the profit center purchased the services from outside the company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Service department charges are often based on market prices for the services provided, so they should be similar to what would be paid if the services were outsourced to another company.

Service Department Charges Are Similar to the Expenses That Would