Asked by Michael Frank on Jun 03, 2024
Verified
Support department costs are applied to products as a part of
A) fixed manufacturing costs
B) variable cost of goods sold
C) fixed selling and administrative expenses
D) overhead
Support Department Costs
Costs associated with the departments that provide essential services to other operational departments within a company but do not directly generate revenue.
Products
Products are goods or services that are created or provided by businesses and made available to consumers for purchase or consumption.
- Understand the importance and methods of allocating support department costs to products.
- Identify the challenges and solutions in measuring and applying support department costs.
Verified Answer
RJ
Rachel JonesJun 07, 2024
Final Answer :
D
Explanation :
Support department costs are typically allocated as part of overhead costs in manufacturing, as they are indirect costs that support the production process but are not directly traceable to specific units of product.
Learning Objectives
- Understand the importance and methods of allocating support department costs to products.
- Identify the challenges and solutions in measuring and applying support department costs.
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