When Using the Step-Down Method,once a Service Department's Costs Are

question 84

True/False

When using the step-down method,once a service department's costs are allocated to other departments,nothing is ever allocated back to it.

---

Definitions:

Total Variable Cost

The total variable cost is the sum of all variable expenses that change in proportion to the volume of output or production.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

TR

Refers to Total Revenue, which is the total income a company earns from the sale of its goods and services.