Consider the following statements about support department costs.i.In order to assign all manufacturing costs to products,support department costs must be allocated to production departments
Ii)Support department costs are period costs rather than product costs because the support departments are not directly involved in production.
Iii)Support departments are not considered crucial to the production process.Which statement/s is/are correct?
A) i,ii and iii
B) i and iii
C) iii
D) i

Question

Quizplus · Accepted Answer

Support department costs are considered product costs because they are necessary for the production process, even though they are not directly involved in production. Therefore, statement ii is incorrect. Support departments are crucial to the production process, making statement iii incorrect. Statement i is correct as support department costs need to be allocated to production departments to assign all manufacturing costs to products.

Consider the Following Statements About Support Department Costs