Which of the following statements regarding production and service department costs is incorrect?

a. For a production department, direct department costs include both direct and indirect product costs.

b. An indirect department cost is a cost assigned to a department as a result of a reassignment from another service department.

C. Companies that use departmental overhead rates likely allocate service department costs to production departments.

d. Companies that use activity-based costing likely do not allocate service department costs to production departments.