(Appendix 4B)Which of the Following Statements About the Step-Down Method

question 83

Multiple Choice

(Appendix 4B) Which of the following statements about the step-down method of allocating service department is correct?

• A) It is a less accurate method of allocation than the direct method.
• B) It cannot be used when a company has more than two service departments.
• C) It is a simpler allocation than the direct method.
• D) It ignores some interdepartmental services.