218. CSO: 1C3d LOS: 1C3o
Boston Furniture Company manufactures several steel products. It has three production
departments, Fabricating, Assembly, and Finishing. The service departments include
Maintenance, Material Handling, and Designing. Currently, the company does not
allocate service department costs to the production departments. John Baker, who has
recently joined the company as the new cost accountant, believes that service department
rates should be developed and charged to the production departments for services
requested. If the company adopts this new policy, the production department managers
would be least likely to
a. request an excessive amount of service.
b. replace outdated and inefficient systems.
c. refrain from using necessary services.
d. be encouraged to control costs.
Bạn đang xem 218. - CMA EXAM SUPPORT PACKAGE 1
