The Allocation Method That Accounts for All Services Rendered Between

question 22

Multiple Choice

The allocation method that accounts for all services rendered between support departments is the

• A) Direct method
• B) Step-down method
• C) Reciprocal method d Dual-rate method

---

Definitions:

Liable

Legally responsible or obligated to do something, particularly paying compensation for harm or damage.

Requirements Contract

A contract in which one party agrees to purchase all of its required goods or services from the other party.

Exclusive Dealing Contracts

Agreements where a retailer or distributor is obligated to buy from only the contracted supplier, thereby limiting the retailer's ability to purchase from other vendors.

Sufficient Consideration

A vital element in contract law, referring to something of value exchanged between parties that is necessary to form a legally binding agreement.