ECONOMICS

COST ACCOUNTING

INTRODUCTION TO COST ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A department that would be classified as a service department is:
A
finishing
B
refining
C
receiving
D
assembly
E
mixing
Explanation: 

Detailed explanation-1: -Solution(By Examveda Team) Receiving department is a service department. A service department is a cost center that provides services to the rest of a company. The manager of a service department is responsible for keeping costs down, or meeting the costs stated in a budget.

Detailed explanation-2: -Common examples of service departments include: Factory maintenance department. Production quality control. Factory information technology department.

Detailed explanation-3: -Departments in a company include Human Resources, IT, Accounting and Finance, Marketing, Research and Development (R&D), and Production. Some product-based or project-based companies may divide up business units by addressing a single product or project as a department.

Detailed explanation-4: -Answer and Explanation: Manufacturing Department is not a service department.

There is 1 question to complete.