The Reciprocal Allocation Method Reflects

question 11

Multiple Choice

The reciprocal allocation method reflects:

• A) All of the support department interactions
• B) None of the support department interactions
• C) Part of the support department interactions
• D) A relatively simple allocation method

---

Definitions:

Absorption Costing

Absorption costing is an accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Manager Bonuses

Extra compensation awarded to managers based on performance criteria or company profitability.

Absorption Costing

An accounting method that includes all manufacturing costs – direct materials, direct labor, and both variable and fixed overhead – in the cost of a product.

Income

The financial gain received by an individual or a business, typically from employment, investments, or sales of goods and services.