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A-LevelAccountingTraditional costing methods9706/12 · May/June 2020 · Q231 Mark

Why are service centre costs apportioned to production departments?

Ato act as a check on service centre managers
Bto ascertain whether service centres are cost effective
Cto ensure the service centre costs are included in selling prices
Dto minimise the total costs of service centres

✓ Correct answer

C: to ensure the service centre costs are included in selling prices

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About this question

Topic
Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, May/June 2020 Paper 1 Variant 2, question 23.

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