Which of the Following Is One of the Methods of Allocating

question 84

Multiple Choice

Which of the following is one of the methods of allocating support department costs to operating departments that partially recognizes mutual service provided among all support departments?

• A) dual-cost allocation method
• B) direct method
• C) sequential allocation method
• D) single-rate cost allocation method

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Definitions:

Mixed Sales

Transactions that involve both the provision of a service and a tangible product, where different aspects of the sale may be subject to varying legal rules.

Combined Sales

The total sales volume resulting from the aggregation of different products or services sold by a company.

Contracts

Legally binding agreements between two or more parties that are enforceable by law.

Tangible Things

Objects or items that can be physically touched and seen, possessing material existence as opposed to abstract concepts.