Because This Allocation Method Recognizes That Service Departments Often Provide

question 67

Multiple Choice

Because this allocation method recognizes that service departments often provide each other with inter-departmental service,it is theoretically considered to be the most accurate method for allocating service department costs to production departments.This method is: (CMA adapted)

• A)direct method.
• B)variable method.
• C)linear method.
• D)reciprocal method.
• E)step-down method.