Common fixed costs that are allocated between departments are generally:

Question

Quizplus · Accepted Answer

The common fixed costs that are allocated between departments are generally irrelevant to the decision of whether to drop a particular department as they do not vary with the level of output or production of any specific department. These costs are incurred for the benefit of the organization as a whole and are unavoidable, regardless of the existence of any department. Therefore, they cannot be used as a basis for evaluating the profitability or worthiness of a particular department.

Common Fixed Costs That Are Allocated Between Departments Are Generally