Because This Allocation Method Recognizes That Service Departments Often Provide

question 30

Multiple Choice

Because this allocation method recognizes that service departments often provide each other with interdepartmental 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.

---

Definitions:

Real Fires

Actual incidents of uncontrolled burning, which can cause damage to properties and environments and require emergency response.

Weekend MBA

A Master of Business Administration program designed for working professionals, with classes and coursework scheduled on weekends.

Misrepresentation

The act of providing false or misleading information about a product or service.

Sales Puffery

Exaggerated or promotional claims about a product or service, not intended to be taken literally, often used in advertising.