1. Which of the following statements is incorrect? a. Service departments provide services to other departments. b. Service departments are not the same as user departments. c. An intermediate cost center is any cost center whose costs are charged to other departments. d. A final cost center is any cost center whose costs are not allocated to other cost centers.

1. Which of the following statements is incorrect? a. Service departments provide services to other departments. b. Service departments are not the same as user departments. c. An intermediate cost center is any cost center whose costs are charged to other departments. d. A final cost center is any cost center whose costs are not allocated to other cost centers.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

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**Multiple Choice**

1. Which of the following statements is incorrect?
a. Service departments provide services to other departments.
b. Service departments are not the same as user departments.
c. An intermediate cost center is any cost center whose costs are charged to other departments.
d. A final cost center is any cost center whose costs are not allocated to other cost centers.

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