The Reciprocal Method of Allocating Support Costs Is Considered Superior

question 38

Multiple Choice

The reciprocal method of allocating support costs is considered superior to other methods because:

• A) It is the easiest method to implement
• B) It spreads support costs among cost pools based on the current number of employees
• C) It takes into account all of the reciprocity in consumption between various departments
• D) It ignores administrative costs because they are assumed to be shared equally by all departments

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Definitions:

Differentiation

Differentiation is the process by which cells or tissues undergo a change towards a more specialized form or function during development.

Neuroglia

Nervous system cells that assist neurons and facilitate their function in a variety of ways.

Nervous Tissue

Animal tissue composed of neurons and neuroglia; detects stimuli and controls responses to them.