JAMB Accounting 2009 Objective — Question 28

Question 28 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2009 Objective paper, with the correct answer and a full explanation.

28. The costs incurred by departments that support the production department with such activities as maintenance, production control and storage are called

A. autonomous costs
B. service costsCorrect
C. supporting costs
D. subsidiary costs

Explanation

When one department provides services to another, the cost allocated to that service is referred to as a service cost.

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