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1.Which of the following statements is true about the support department of an organization?

a. The Auditing department of a public accounting firm is an example of a support department.

b. A support department is indirectly connected with an organization's services or products.

c. The Production department of a manufacturing organization is an example of a support department.

d. A support department is directly responsible for creating the products or services sold to customers.

2. Which of the following statements is true about the support department of an organization?

a.The Auditing department of a public accounting firm is an example of a support department.

b.A support department is indirectly connected with an organization's services or products.

c.The Production department of a manufacturing organization is an example of a support department.

d.A support department is directly responsible for creating the products or services sold to customers.

3.The benefit of the dual-rate charging method of cost allocation is:

a.that it is similar to a plantwide overhead rate where all support department costs are accumulated in the numerator and some measure of usage is in the denominator.

b.that it sends the correct signal regarding the increased usage of a support department during the peak usage period of the department.

c.that it is easy to apply since it assumes variable costs to be fixed.

d.that it makes supporting departments responsible for their usage and helps to prevent overuse of resources.

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