Asked by Syanindita Kirana Larashira on May 28, 2024
Verified
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.
Verified Answer
Learning Objectives
- Recognize the imperative and operational dynamics of cost allocation in the management and accounting arenas.
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