A company uses the repeated distribution method to reapportion service department costs.
January 1st, 2018
A company uses the repeated distribution method to reapportion service department costs. The use of this method suggestsA. The company’s overhead rates are based on estimates of cost and activity levels, rather than actual amountsB. There are more service departments than production cost centresC. The company wishes to avoid under- or over-absorption of overheads in its production cost centresD. The service departments carry out work for each other