Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as

A. complete reciprocal costs

B. artificial costs

C. operating costs

D. flexible operating costs

Answer: Option A

Solution(By Examveda Team)

Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as complete reciprocal costs. The allocation of service department costs is incomplete if the method used for cost allocation ignores or does not give full recognition to interdepartmental services.