The overhead allocation method that allocates service department costs without consideration of services rendered to other service departments is the

Which of the following is a reason for allocating service department costs and thereby motivating management?

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ASSIGNMENT #6 EDITED

Which of the following is a reason for allocating service department costs and thereby motivating management?

a. meets regulations in some pricing instances

b. provides relevant information in determining corporate-wide profits generated by alternative actions

c. reflects usage of services on a fair and equitable basis

d. provides for cost recovery

Question text

The difference between the profit margin controllable by a segment manager and the segment profit margin is caused by:

a. variable operating expenses.

b. fixed expenses traceable to the segment but controllable by others.

c. fixed expenses controllable by the segment manager.

d. other revenue.

e. allocated common expenses
Question text

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