Which of the following statement is false?

A) All direct costs of the support department are accumulated in the department cost center.
B) Support departments may incur both variable and fixed costs, such as salaries and wages.
C) Support departments incur only variable factory overhead costs.
D) General factory overhead, such as depreciation, may be assigned to a support department.

Question

Hasnaa Soliman · Accepted Answer

Final Answer : C, Explanation :  Support departments can incur both variable and fixed costs, not just variable factory overhead costs. This includes costs like salaries, maintenance, and depreciation, which can be fixed or variable.

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