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1. Which of the following statements is correct? A. If there is a plant-wide overhead rate, costs are shared between production cost centres and service
1. Which of the following statements is correct? A. If there is a plant-wide overhead rate, costs are shared between production cost centres and service cost centres. B. Only production cost centres incur overhead costs, but service cost centres do not. C. The overhead costs of service cost centres are reallocated to production cost centres. D. The overhead costs of service cost centres are written off as period costs. (1 mark) 1.a For Two of the incorrect answers, explain why the statement is incorrect. (4 marks)
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