Multiple Choice QuestionA departmental contribution to overhead report is based on:Multiple choice question.uncontrollable costscontrollable costsservice department allocations
Question
Multiple Choice QuestionA departmental contribution to overhead report is based on:Multiple choice question.uncontrollable costscontrollable costsservice department allocations
Solution
The answer to this multiple choice question is "controllable costs". A departmental contribution to overhead report is based on controllable costs because these are the costs that can be directly influenced or changed by the actions of a specific department within an organization. Uncontrollable costs, on the other hand, cannot be directly influenced by a department. Service department allocations are a method of distributing costs, but they are not the basis for a departmental contribution to overhead report.
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