Consider the following statements about support department cost allocations.i.In a modern manufacturing environment,it is not necessary to allocate support department costs
Ii)Support department cost allocations continue to be necessary when a highly automated system is in use.
Iii)In a flexible manufacturing system,the need to allocate costs diminishes because more costs have become traceable to the product.Which statement/s is/are true?
A) i
B) i and ii
C) ii and iii
D) i,ii and iii

Question

Quizplus · Accepted Answer

Statement ii is true because even in highly automated systems, support department costs need to be allocated to understand the full cost of production. Statement iii is true because in flexible manufacturing systems, more costs can be directly traced to products, reducing the need for allocations. Statement i is false because support department cost allocations are still necessary in modern manufacturing environments.

Consider the Following Statements About Support Department Cost Allocations