Which of these is not an uncertainty when allocating support department costs?
A) deciding whether to use dual or single rate allocations
B) identifying the appropriate cost driver
C) knowing which departments are support departments and which are operating departments
D) selecting the most appropriate allocation method

Question

Quizplus · Accepted Answer

Knowing which departments are support departments and which are operating departments is generally not an uncertainty because the distinction between support and operating departments is usually clear within an organization. Uncertainties typically arise in how to allocate costs, not in identifying the nature of the departments.

Which of These Is Not an Uncertainty When Allocating Support