Which of the following companies is following a policy with respect to the costs of service departments that is not recommended? A. To charge operating departments with the depreciation of forklifts used at its central warehouse, Shalimar Electronics charges predetermined lump-sum amounts calculated on the basis of the long-term average use of the services provided by the warehouse to the various segments. B. Manhattan Electronics uses the sales revenue of its various divisions to allocate costs connected with the upkeep of its headquarters building. C. Rainier Industrial does not allow its service departments to pass on the costs of their inefficiencies to the operating departments. D. Golkonda Refinery separately allocates fixed and variable costs incurred by its service departments to its operating departments.

Which of the following companies is following a policy with respect to the costs of service departments that is not recommended? Multiple Choice To charge operating departments with the depreciation of forklifts used at its central warehouse, Shallmar Electronics charges predetermined lump-sum amounts calculated on the basis of the longterm average use of the services provided by the warehouse to the varlous segments. Manhattan Electronics uses the sales revenue of its varlous divisions to allocate costs connected with the upkeep of its headquarters bullding. Rainler Industrlal does not allow its service departments to pass on the costs of thelr Inefficlencles to the operating departments. Golkonda Refinery separately allocates fixed and varlable costs incurred by Its service departments to its operating departments