The Direct Method Ignores Other Service Departments When Any Given

question 137

True/False

The direct method ignores other service departments when any given service department's costs are allocated to the revenue-producing operating) departments.

---

Definitions:

Payroll Taxes

Taxes that are withheld from employees' wages or salaries by employers and paid directly to the government, including Social Security and Medicare taxes.

Workers' Compensation

Insurance that ensures employees receive medical care and wage replacement if they sustain injuries at work.

Estimated

An approximate calculation or judgment of the value, number, quantity, or extent of something.

Workers' Compensation

Coverage that delivers healthcare benefits and substitutes income for workers injured during their employment tasks.