Question

The costs of services charged to a profit center on the basis of its use of those services are:__________a. support department allocationsb. noncontrollable chargesc. activity chargesd. operating expenses

Answer 1

Answer:

a. support department allocations

Explanation:

These costs are known as support department allocations or service department charges. Every company tends to have these costs since this applies to any department or third party which provides the company with a service. Many times this mainly refers to manufacturing departments and production departments since both provide a service that every company needs in order to obtain their desired product.