Asked by Kennedy Brame on Jul 02, 2024

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Because support department costs are indirectly related to production, they are applied to products as part of overhead.

Support Department Costs

Support Department Costs are expenses incurred by service departments within a company, such as human resources or maintenance, that do not directly contribute to revenue but provide essential support to profit-making operations.

Indirectly Related

Pertaining to elements or factors that have an influence on a situation or outcome but are not a direct cause or effect.

  • Acknowledge the critical nature and hurdles associated with the accurate assignment of support department expenses.
  • Identify the differences between direct and indirect costs relating to support departments.
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HS
Harman Singh6 days ago
Final Answer :
True
Explanation :
Support department costs, such as maintenance and administration, do not directly contribute to the production of specific products but are necessary for the overall operation. Therefore, they are allocated to products as part of the overhead costs to ensure that the total cost of production is accurately reflected.