The Allocation Method for Support Department Costs That Allocates Fixed

question 40

Multiple Choice

The allocation method for support department costs that allocates fixed and variable costs separately is:

• A) the reciprocal method
• B) the step-down method
• C) the dual rate method
• D) the direct method

---

Definitions:

Revenue Trend Percent

A metric that measures the rate of change in a company's revenue over a specific period, helping to understand growth patterns.

Base Year

A specific year against which economic or financial data is compared over a period of time.

Sales

The exchange of goods or services for money, measuring the primary revenue-generating activities of a business.

Common-size Percent

A technique used in financial analysis where all line items are expressed as a percentage of a common base figure, facilitating comparison between financial periods and companies.