Which of the Following Statements Is(are) False Regarding the Direct

question 94

Multiple Choice

Which of the following statements is(are) false regarding the direct method of allocating service department costs?
(A) The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method.
(B) Once an allocation is made from a service department using the direct method, no further allocations are made back to that department.

• A) Only A is false.
• B) Only B is false.
• C) Neither of these is false.
• D) Both of these are false.

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Definitions:

Inflation

Inflation refers to the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Loan

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Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold.

Short-Term Debt

Debt obligations scheduled for repayment within one year.