contestada

True or false: The variable costs of service departments should be charged to consuming departments in a predetermined lump-sum amount, so that the cost of the service can be properly traced to departments, products, and customers. True false question. True

Respuesta :

chilljain33

For the purpose of easy traceability, the variable costs of service departments shall always be charged in a lump-sum amount.

What are variable costs?

The costs which are not fixed in nature are called variable costs. Such costs related to services are a representation of cost making capacities, ready to use.

If such costs are charged in lump-sums to each of the service departments, the exact cost involved in provision of such service can be traced back to the particular department.

Hence, the aforementioned statement regarding the variable costs of service departments holds true.

Learn more about variable costs here:

https://brainly.com/question/14083670

#SPJ1