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Commerce · Q130

Costing

Graduate and Post Graduate · Commerce · question 130

Q130

Which of the following is a service department?

A.
Refining department
B.
Machining department
C.
Receiving department
Answer
D.
Finishing department

Answer: Option C

Solution

Answer: Option C
Solution:
Receiving department is a service department. A service department is a cost center that provides services to the rest of a company. The manager of a service department is responsible for keeping costs down, or meeting the costs stated in a budget.