Question
Pick the best answer. Which of the following is the correct rationale behind allocating support department costs to products? a.The Institute of Management Accountants (IMA)
Pick the best answer.
Which of the following is the correct rationale behind allocating support department costs to products?
a.The Institute of Management Accountants (IMA) requires the allocation of support department costs to products.
b.Support department costs are impossible to trace to the facility, so they must be traced to the department.
c.Support department services may be used more heavily by some products than others, and recording them as facility-level costs can result in inaccurate product costs.
d.Support department services are rarely used more heavily by some products than others, and it is best to record them at the facility level for more accurate product costing.
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