Which of the following is not a problem caused by assigning actual service depar

Question

Which of the following is not a problem caused by assigning actual service department costs to operating departments based on actual usage of service department activities by the operating departments? A) The cost assigned to one manager will be affected by the service usage of another manager. B) Inefficiencies in the service department will be passed along to the operating departments. C) Operating managers having high peak capacity requirements will not have to bear the full cost of meeting this peak capacity. D) All of these answer choices are problems caused by assigning actual service costs to operating departments.

Explanation / Answer

Answer: D.

All of these answer choices are problems caused by assigning actual service costs to operating departments.

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