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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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(Appendix 4B) Those departments that provide essential services to producing departments are referred to as

  1. a. revenue-generating departments.
  2. b. support departments.
  3. c. profit centers.
  4. d. production departments.
  5. e. None of these.

To determine

Identify the department that provides essential services to producing departments.

Explanation

Support department:

The departments which provide support to the producing department during the production are known as support departments. Support departments are important for smooth and high quality production process.

b.

Support departments provide essential services to producing departments during the production. Therefore, option b is the correct answer.

a.

Revenue-generating department are concerned with the sale of the finished products and does not play any role in the production process...

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