Which Service Department Cost Allocation Method Assigns Indirect Costs to Cost

question 145

Multiple Choice

Which service department cost allocation method assigns indirect costs to cost objects after considering interrelationships of the cost objects?
$\text {\underline{Algebraic method. } }$                                 $\text {\underline{ Step method} }$

• A)no no
• B)no yes
• C)yes yes
• D)yes no

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Definitions:

Gross Domestic Product

The overall value, whether in market prices or monetary terms, of all final goods and services produced within the territorial limits of a country in a specific period.

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy.

Primary Products

Goods that are available from cultivating raw materials without a manufacturing process.

Crop Supply

Crop supply denotes the total quantity of agricultural crops that are available in the market during a specific period.