Business, 12.10.2021 14:00, adricabrera

Boston Furniture Company manufactures several steel products. It has three production departments:??Fabricating, Assembly, and Finishing. The service departments include Maintenance, Material Handling, and Designing. Currently, the company does not allocate service department costs to the production departments. John Baker, who has recently joined the company as the new cost accountant, believes that service department rates should be developed and charged to the production departments for services requested. If the company adopts this new policy, the production department managers would be least likely to:. A. Request an excessive amount of service.
B. Replace outdated and inefficient systems.
C. Refrain from using necessary services.
D. Be encouraged to control costs.

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Boston Furniture Company manufactures several steel products. It has three production departments:??...