Which of the following describes the complete reciprocated cost?
A) It only includes the actual incurred cost of the operations department.
B) It only includes the actual incurred cost of the support department.
C) It is always larger than actual cost.
D) It is always less than actual cost.
E) It is equal to the actual cost of a single service department.

Question

Quizplus · Accepted Answer

The complete reciprocated cost includes the actual incurred cost of both the operations and support departments, as well as any reciprocal cost allocations. Therefore, it is always larger than the actual cost.

Which of the Following Describes the Complete Reciprocated Cost