a. the incremental costs of production in the selling division.
b. a negotiated transfer price.
c. the market price for the good.
d. the price that a buying division is willing to pay on an internal transfer.
Question text
Indirect costs should be allocated for all of the following reasons except to
a. motivate managers.
b. compare alternatives for decision making.
c. determine the full cost of a product.
d. motivate general administration. Question text
When the step-down method is used, the service department whose costs are allocated first is often the department that:
a. is the newest.
b. serves the greatest number of other service departments.
