What Allocation Method Recognizes That Service Departments Often Provide Each

question 192

Multiple Choice

What allocation method recognizes that service departments often provide each other with interdepartmental services,and it is therefore considered to be the most accurate method for allocating service department costs to operating departments?

• A) The direct method.
• B) The step-down method.
• C) The reciprocal method.
• D) The allocation by cost behaviour method.

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Definitions:

Acquisition

The process of learning or obtaining knowledge, skills, or attitudes.

Performance

The act or process of carrying out a task or function, often measured against preset standards.

Preparedness

The state of being ready and well-prepared for various situations or emergencies.

Taste Aversions

A learned response to eating spoiled or toxic food, leading to nausea or avoidance, even at the smell or thought of the food.