Which departments in an organization produce services for external clients?
A) Support departments
B) Operating departments
C) Dual-rate departments
D) Value-added departments

Question

Quizplus · Accepted Answer

Operating departments produce goods or services that are sold to external clients. Support departments provide services to other departments within the organization, while dual-rate departments have both fixed and variable costs that are allocated differently depending on the purpose of the allocation. Value-added departments add value to the goods or services produced by operating departments, but do not directly serve external clients.

Which Departments in an Organization Produce Services for External Clients