When Using the Direct Allocation Method, a Cost Accountant Would

question 48

Multiple Choice

When using the direct allocation method, a cost accountant would ________.

• A) not allocate support department costs to other support departments
• B) use information about reciprocal services provided among support departments and therefore could generate inaccurate estimates of the cost of operating departments
• C) allocate complete reciprocated costs
• D) allocate support department costs to other support departments

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