Which of the Following Statements Is True About the Direct

question 13

Multiple Choice

Which of the following statements is true about the direct method of allocating support department costs to production departments?

• A)The direct method is more difficult to use than the sequential method.
• B)The direct method allocates only some of the support department costs directly to production departments and is more accurate than the reciprocal services method.
• C)The direct method requires that the same cost driver be used for each support department.
• D)The direct method allocates all support department costs directly to production departments thus ignoring the possibility that some support departments may also serve other support departments.

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Definitions:

Resolve Conflicts

The process of identifying and addressing differences that if left unchecked, can disrupt unity or cause disharmony.

Identify

The act of recognizing or establishing the identity of a person or thing.

Reports

Documents or presentations that provide information or analysis on a specific topic, often used to convey findings or progress to others.

Solutions

Strategies or answers devised to solve problems or address challenges effectively.