Write the Word or Phrase That Best Completes Each Statement

question 9

Multiple Choice

Write the word or phrase that best completes each statement or answers the question.
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• A){33}
• B){-32}
• C){-33}
• D){32}

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Definitions:

Direct Method

A method of allocating service departments' costs directly to production departments without intermediate allocations.

Machine Hours

Machine hours represent the total time a machine is operated within a specific period. This metric is often used in manufacturing to allocate costs based on machine usage.

Number Of Employees

The total count of individuals employed by a company, including both full-time and part-time workers.

Step-down Method

An allocation method used in cost accounting to distribute overhead costs from service departments to producing departments based on a hierarchy of service relationships.