Multiple Choice QuestionA departmental contribution to overhead report is based on:Multiple choice question.service department allocationsuncontrollable costscontrollable costs
Question
Multiple Choice QuestionA departmental contribution to overhead report is based on:Multiple choice question.service department allocationsuncontrollable costscontrollable costs
Solution
A departmental contribution to overhead report is based on service department allocations. This is because overhead costs are often allocated based on the level of services provided by different departments. Uncontrollable costs are those that cannot be influenced by a manager's decisions, so they are not typically used for this type of report. Controllable costs can be influenced by a manager's decisions, but they are not the primary basis for a departmental contribution to overhead report. Therefore, the correct answer is service department allocations.
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