The Step Down Method Allocates Support Department Costs, One Department

question 67

True/False

The step down method allocates support department costs, one department at a time, to remaining support departments and operating departments in a cascading manner until all support department costs have been allocated.

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Definitions:

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares owned by the company’s officers and insiders.

Cumulative Voting

A method of voting used in corporate elections that allows shareholders to allocate their total votes in any proportion among candidates.

Articles Of Incorporation

A document that contains basic information about a corporation and is filed with the state.

RMBCA

Stands for the Revised Model Business Corporation Act, a template for state laws regulating the formation, operation, and dissolution of corporations.