The Step-Down Method of Allocation Improves the Direct Method By

question 9

Multiple Choice

The step-down method of allocation improves the direct method by:

• A)Considering the reciprocity in consumption partially.
• B)Simplifying the allocation approach.
• C)Allocating more of the total cost of the service activity.
• D)Using a statistical approach to allocation.
• E)None of the above.

---

Definitions:

Personal Banker

A bank employee who provides financial advice, manages accounts, and offers banking services to individual clients.

Government Agency

An organization part of the government tasked with enforcing specific laws, regulating industries, or providing government services.

Service Continuum

The range of services offered by a company, from purely physical products to purely service offerings.

Government-sponsored Services

Services provided by the government to its citizens, including education, healthcare, and public transportation.