The department which provides assisting services to internal departments is classified as __________?
Correct answer: D. support department
- A. supply department
- B. allocation base department
- C. production department
- D. support department
Explanation
A support department serves other internal departments rather than directly manufacturing the main product or delivering the main service. Examples include maintenance, stores, and personnel departments.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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