In the single rate method used in the support division cost allocation, when budgeted cost-allocations rate is used: O user/operating divisions pay for inefficiencies of the supplier/support department Ouser/operating divisions pay for costs that exceed budgeted amounts O the manager of the supplier/support division bears the risk of unfavorable cost variances Ovariations in actual usage by one operating division affect the costs allocated to other operating divisions

In the single rate method used in the support division cost allocation, when budgeted cost-allocations rate is used: O user/operating divisions pay for inefficiencies of the supplier/support department Ouser/operating divisions pay for costs that exceed budgeted amounts O the manager of the supplier/support division bears the risk of unfavorable cost variances Ovariations in actual usage by one operating division affect the costs allocated to other operating divisions

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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