Which Service Department Cost Allocation Method Assigns Costs Directly to Revenue-Producing

question 9

Multiple Choice

Which service department cost allocation method assigns costs directly to revenue-producing areas with no other intermediate cost pools or allocations?

• A)step method
• B)indirect method
• C)algebraic method
• D)direct method

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Definitions:

Skinner

An influential American psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Recognition

The cognitive process of identifying previously encountered information from a group of choices.

Cognitive Process

The cognitive process of gaining knowledge and comprehension via thinking, experiencing, and sensory perception.

Familiar

Well known from long or close association.