Asked by Syanindita Kirana Larashira on May 28, 2024

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The mutual provision of service between support departments is called:

A) joint service.
B) shared services.
C) reciprocal services.
D) allocated services.

Reciprocal Services

Transactions in which services are exchanged between departments or units within an organization, often involving an allocation of costs.

Mutual Provision

The practice of supplying and receiving goods or services among a group or organizations, based on cooperative agreement rather than market competition.

Support Departments

Business units that provide essential services (like IT, HR, and administration) needed by other departments to perform their core activities effectively.

  • Recognize the imperative and operational dynamics of cost allocation in the management and accounting arenas.
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Verified Answer

AB
Aiden BelloneMay 31, 2024
Final Answer :
C
Explanation :
The term usually used for the mutual provision of service between support departments is reciprocal services. Joint services refer to the situation where two or more departments pool their efforts to undertake a task or project. Shared services involve the sharing of resources, knowledge, or facilities by different departments within an organization. Allocated services are those that are assigned to specific departments based on their needs and usage.