Which of the following is an illustration of reciprocal service costs?
A. The maintenance cost centers uses 10% of the power generating cost centre cost and the power generating cost uses 15% of the maintenance cost centre
B. Maintenance costs are charged to the power generating cost Centre which are then charged to the production cost centre Using power
C. Service cost centre costs are caused because of the requirements of production cost centers
D. The use of service results in reciprocal action by the service cost centre where by it charges the use of cost centre
Answer:A
Which of the following is an illustration of reciprocal service costs?
A. The maintenance cost centers uses 10% of the power generating cost centre cost and the power generating cost uses 15% of the maintenance cost centre B. Maintenance costs are charged to the power generating cost Centre which are then charged to the production cost centre Using power C. Service cost centre costs are caused because of the requirements of production cost centers D. The use of service results in reciprocal action by the service cost centre where by it charges the use of cost centre