Asked by Kimberly Beltran on May 17, 2024
Verified
Consider the following statements about support department cost allocations.
i. In a modern manufacturing environment, it is not necessary to allocate support department costs.
ii. Support department cost allocations continue to be necessary when a highly automated system is in use.
iii. In a flexible manufacturing system, the need to allocate costs diminishes because more costs have become traceable to the product.
Which statement/s is/are true?
A) i
B) i and ii
C) ii and iii
D) i, ii and iii
Support Department Cost Allocations
The distribution of overheads and expenses from support departments to operational departments based on criteria reflecting their use of support services.
Modern Manufacturing Environment
Refers to the current state of manufacturing characterized by advanced technologies, lean production methods, and increased emphasis on sustainability.
Highly Automated System
A system incorporating advanced technologies to minimize human intervention in its operations.
- Comprehend the critical role and methodologies of cost distribution in the fields of accounting and management.
Verified Answer
Learning Objectives
- Comprehend the critical role and methodologies of cost distribution in the fields of accounting and management.
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