Department which directly adds value to product or service is known as

production department
operating department
allocation base department
both a and b

The correct answer is: D. both a and b

A production department is a department that directly adds value to a product or service. This can include departments such as manufacturing, assembly, and packaging. An operating department is a department that supports the production of goods or services. This can include departments such as marketing, sales, and customer service.

Both production and operating departments are essential to the success of a business. Without production departments, there would be no products or services to sell. Without operating departments, there would be no way to market, sell, or deliver those products or services.

In some cases, a department may be both a production department and an operating department. For example, a department that manufactures products may also be responsible for marketing and selling those products. In these cases, the department would be considered both a production department and an operating department.

It is important to note that the distinction between production and operating departments is not always clear-cut. Some departments may have elements of both production and operating functions. In these cases, it may be more helpful to think of departments in terms of their primary function. For example, a department that is primarily responsible for manufacturing products would be considered a production department, even if it also has some operating functions.