(Appendix 12B)For performance evaluation purposes, the lump-sum amount of fixed service department costs charged to an operating department should usually be based on either the operating department's peak-period or long-run average needs.

Question

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The lump-sum amount of fixed service department costs charged to an operating department should be based on the operating department's peak-period or long-run average needs to accurately evaluate performance.

(Appendix 12B)For Performance Evaluation Purposes, the Lump-Sum Amount of Fixed