The departmental approach of cost allocation recognizes that the typical manufacturing operation involves which type(s)of departments?
A)Service departments and product departments.
B)Production departments and assembly departments.
C)Joint product departments and separable departments.
D)Cost pools and cost objects.
E)Support departments and other service departments.

Question

Quizplus · Accepted Answer

The departmental approach of cost allocation recognizes that the typical manufacturing operation involves service departments, which provide support to production departments, and product departments, which are directly involved in the manufacturing of products. Therefore, choice A - service departments and product departments - is the correct answer.

The Departmental Approach of Cost Allocation Recognizes That the Typical