Consider the Following Statements About the Direct Method of Service

question 74

Multiple Choice

Consider the following statements about the direct method of service department cost allocation:
I. Under the direct method, all service department costs are eventually allocated to production departments.
II. The order in which service department costs are allocated to production departments is important.
III. Once a service department's costs have been allocated, no costs are re-circulated back to that department.
Which of the above statements is (are) correct?

• A) I only.
• B) II only.
• C) I and II.
• D) I and III.
• E) I, II, and III.

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Definitions:

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to the diagnosis of mental disorders.

Dissociative Identity Disorder

A mental disorder characterized by the presence of two or more distinct personality states that control an individual's behavior at different times, along with memory gaps for the time when another personality is in control.

Alters

Refers to each of the unique personalities in an individual who has dissociative identity disorder (DID). Alters may be very different from each other, with opposite personality traits (e.g., one very extraverted and another very introverted), and differences in the age, sex, race, and family history they claim to have.

Unique Personalities

Refers to the distinctive set of traits, behaviors, and thought patterns that make up an individual's character, distinguishing them from others.