Following are reasons to allocate support department costs:
I. To motivate managers to provide and use support services efficiently
II. For external reporting such as cost reports for government contracts
III. For economic planning and decision-making
A) I only
B) II only
C) III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Allocating support department costs serves multiple purposes, including motivating managers to use support services efficiently, providing cost reports for external reporting, and aiding in economic planning and decision-making. Therefore, all three options - I, II, and III - are correct.

Following Are Reasons to Allocate Support Department Costs