Q610
Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as
A.
complete reciprocal costs
AnswerB.
artificial costs
C.
operating costs
D.
flexible operating costs
Answer: Option A
Solution
Answer: Option A
Solution:
Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as complete reciprocal costs. The allocation of service department costs is incomplete if the method used for cost allocation ignores or does not give full recognition to interdepartmental services.