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:

Disclosure

The action of making new or secret information known.

Covert Research

Covert research refers to studies where the subjects are unaware they are being observed or studied, often used in sociology and psychology to observe natural behaviors without the influence of the observer's presence.

Replicate

To duplicate a study or experiment to verify its results.

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The evaluation of work by one or more people of similar competence to the producers of the work, which constitutes a form of self-regulation by qualified members of a profession within the relevant field.